Hi all--
The London Squeeze workshop in Las Vegas March 28th went off extremely well. The only hitch was they switched our conference room at the last minute. Perhaps it was a security thing.
The synergy of the participants couldn't have been better. I thoroughly enjoyed meeting and speaking with every one. We had bright attendees from around the world and the U.S. All had the desire to be the best professional traders possible and improve the skills necessary to consistently execute despite drawdowns and world changes.
In this difficult profession, there is a tremendous benefit in meeting and discussing trading nuances with your peers face-to-face. An additional benefit is the understanding it provides to your mental game to meet others who have successfully learned to cope with trading issues similarly or differently than yourself.
I was great for me to put a face to a number of the intelligent followers of this site and get valuable feedback about the needs of new but serious forex traders.
In the future we will likely hear some of the attendees' personal observations.
I'm returning to Minneapolis in a few days.
This morning's open allowed us to exit profitably the short Eur/Usd and long Usd/Chf FirstStrikePlus trades from last week.
So far: I've placed my orders for this week; already filled on the short Gbp/Jpy FSP trade, filled and stopped out on the short Usd/Jpy FSP trade.
When I return home I will do last week's recap and continue with the results of trading this week.
So far, it looks like a fickle start. That happens.
Best of wishes to you all.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Monday, March 30, 2009
Thursday, March 26, 2009
Patience! -IFCN WK 68 - Thu- Equity: $2,984.95
Patience is a large part of trading.
Losers always feel that they are missing something and feel the need to continually trade. When you've traded a lot and know how important it is to wait until “your” trade shows up, it is because you appreciate well how patience and profitable trading go hand-in-hand.
Having patience helps this week.
Even though we took a loss on our Gbp/Usd trade, we still don't have FirstStrikePlus Eur/Usd or Usd/Chf trades triggered. Maybe we'll get a doubled position with OneNightStand trades being elected too. I've seen stranger things.
-----
The week's FirstStrikePlus trades:
Trading account equity: $1,936.95
Silver position equity: $1,048.00
(Current XAG price: $13.57 – 400 unit position average: $10.95)
TOTAL Equity: $2,984.95
I will go back to patience mode.
An interesting point- if we don't get any moves out of the euro or swiss franc this week, maybe next week could be huge-- because our volatility is so low this week and we would then have large position size.
I''m posting this from my room in Las Vegas, with millions in cash being gambled a 100 feet from me downstairs. Wagered largely by individuals without a clue or an edge.
Considering that many (perhaps most) who engage the markets are little different than the drunken masses below me-- one can take comfort that it isn't much more difficult to separate capital in trading than it is for the casino to run its crap table. All it takes is patience to wait for “your” trades.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Losers always feel that they are missing something and feel the need to continually trade. When you've traded a lot and know how important it is to wait until “your” trade shows up, it is because you appreciate well how patience and profitable trading go hand-in-hand.
Having patience helps this week.
Even though we took a loss on our Gbp/Usd trade, we still don't have FirstStrikePlus Eur/Usd or Usd/Chf trades triggered. Maybe we'll get a doubled position with OneNightStand trades being elected too. I've seen stranger things.
-----
The week's FirstStrikePlus trades:
- gbp/jpy: Long @ 140.94, stop 138.90. Trade in progress.
- gbp/usd: Long @ 1.4727, stopped out at 1.4426 for a 301 pip loss.
- usd/jpy: Long @ 97.77, stop 95.60. Trade in progress.
Trading account equity: $1,936.95
Silver position equity: $1,048.00
(Current XAG price: $13.57 – 400 unit position average: $10.95)
TOTAL Equity: $2,984.95
I will go back to patience mode.
An interesting point- if we don't get any moves out of the euro or swiss franc this week, maybe next week could be huge-- because our volatility is so low this week and we would then have large position size.
I''m posting this from my room in Las Vegas, with millions in cash being gambled a 100 feet from me downstairs. Wagered largely by individuals without a clue or an edge.
Considering that many (perhaps most) who engage the markets are little different than the drunken masses below me-- one can take comfort that it isn't much more difficult to separate capital in trading than it is for the casino to run its crap table. All it takes is patience to wait for “your” trades.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Wednesday, March 25, 2009
So Far, a Week of Rest! -IFCN WK 68 - Wed- Equity: $3,004.79
Relative rest, that is.
As I am writing this, we got some chaotic action in the currencies and metals.
An unexpected change in home sales and other unexpected revisions in reports made previously scared more people into other currencies-not-the-dollar. Silver, which just an hour before dropped back to touch 13.00 -- suddenly rocketed more than 60 cents/ounce.
A lot of excitement in these markets.
I'm glad we have ways to get aboard and stay aboard.
-----
I am looking forward to the London Squeeze workshop being held in Las Vegas, Nevada this Saturday.
It promises to be a great time, with attendees from more than 5 countries around the globe.
With the recent volatility in forex, trading a daily volatility breakout method in addition to FirstStrikePlus and ONS has been valuable for equity curve smoothing. Not to mention having additional risk-adjusted opportunities when the market moves like it did this morning.
-----
The week's current FirstStrikePlus trades:
Trading account equity: $1,960.79
Silver position equity: $1,044.00
(Current XAG price: $13.56 – 400 unit position average: $10.95)
TOTAL Equity: $3,004.79
It isn't surprising to have a choppy week after a startling trend week. We'll stay aboard and keep watching.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
As I am writing this, we got some chaotic action in the currencies and metals.
An unexpected change in home sales and other unexpected revisions in reports made previously scared more people into other currencies-not-the-dollar. Silver, which just an hour before dropped back to touch 13.00 -- suddenly rocketed more than 60 cents/ounce.
A lot of excitement in these markets.
I'm glad we have ways to get aboard and stay aboard.
-----
I am looking forward to the London Squeeze workshop being held in Las Vegas, Nevada this Saturday.
It promises to be a great time, with attendees from more than 5 countries around the globe.
With the recent volatility in forex, trading a daily volatility breakout method in addition to FirstStrikePlus and ONS has been valuable for equity curve smoothing. Not to mention having additional risk-adjusted opportunities when the market moves like it did this morning.
-----
The week's current FirstStrikePlus trades:
- gbp/jpy: Long @ 140.94, stop 138.90. Trade in progress.
- gbp/usd: Long @ 1.4727, stop 1.4426. Trade in progress.
- usd/jpy: Long @ 97.77, stop 95.60. Trade in progress.
Trading account equity: $1,960.79
Silver position equity: $1,044.00
(Current XAG price: $13.56 – 400 unit position average: $10.95)
TOTAL Equity: $3,004.79
It isn't surprising to have a choppy week after a startling trend week. We'll stay aboard and keep watching.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Tuesday, March 24, 2009
Thanks to Weak Dollar- New Equity Highs! -IFCN WK 68 - Mon- Equity: $3,032.14
Despite some loss trades last week this Monday's exiting profits from the Eur/Usd, Usd/Chf, and Usd/Jpy offset them handily since the position sizes exited were generous due to low volatility conditions prior to entry.
It is nice when trades work out well.
It is also astounding to me, even after trading these types of methods for decades- how quickly one can go from a burgeoning drawdown to new equity highs so quickly. On Tuesday of last week we had a current equity of $2,338 and in less than a week we were up 29% from there.
Then again, it is rare that we get Fed actions as pronounced as we experienced Wednesday of last week.
I'm always grateful when things work out, but I never feel lucky. It is too easy to lose in this business.
Make a trading mistake at the wrong time, be slow about putting in your orders, get sloppy about position sizing..., hundreds of little things done poorly could drastically affect returns.
For example, if I was unduly worried about the drawdown the account was in a week ago and didn't place full size positions on the winning Eur/Usd, Usd/Chf, and Usd/Jpy trades, the results by Monday's open would not have been as substantial. Same goes with the XAG addition at $12.00. That helped tremendously in the IFCN total equity.
Some would say that we were lucky. Well, maybe it would be for others, but for those who trade like us-- it is just taking care of business, and therefore, business is good sometimes.
Week of March 16, 2009---FirststrikePlus trade executions:
*gbp/jpy Short @ 136.71, stopped at 139.09 for 238 pip loss.
*gbp/usd Short @ 1.3993, stopped at 1.4132. for 139 pip loss.
*positions held before March 16th open.
OneNightStand trades for Friday, March 20, 2009
-None-
Trading account equity: $1,932.14
Gain from previous week: $ 181.70
Silver position equity: $1,100.00
(Current XAG price: $13.70 – 400 unit position average: $10.95)
TOTAL Equity: $3,032.14
We probably won't have as fantastic of a week for a while, but I always enjoy a sharp lift like this one. The rest of you who executed the trades are no doubt happy you did.
I have a quick email sent the other day:
Hi Joel,
Thank you for your efforts to drag us into success. :-)
I will go for it!
One question.
Why do you prefer owning physical gold instead of
riding the trend with Oanda's spot gold or with
futures?
Are you afraid of there may be times when we
cannot have access to our funds in the banks?
If the above is true then a safe in a bank is not
an option either to store physical gold.
So take the gold home with you?
Thanks for your help. -J-
-----
My answer is below:
Gold is ok.
Silver is better. Greater upside potential.
You are basically correct about storing your precious metals in banks.
There are too many historical precedents about metal being absconded with,
for various reasons, non of which benefit the precious metal holder.
Keep it safe somewhere else. Your creativity will likely find a great
place to protect your precious metal.
Joel
Thanks for the input. Have a good week.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
It is nice when trades work out well.
It is also astounding to me, even after trading these types of methods for decades- how quickly one can go from a burgeoning drawdown to new equity highs so quickly. On Tuesday of last week we had a current equity of $2,338 and in less than a week we were up 29% from there.
Then again, it is rare that we get Fed actions as pronounced as we experienced Wednesday of last week.
I'm always grateful when things work out, but I never feel lucky. It is too easy to lose in this business.
Make a trading mistake at the wrong time, be slow about putting in your orders, get sloppy about position sizing..., hundreds of little things done poorly could drastically affect returns.
For example, if I was unduly worried about the drawdown the account was in a week ago and didn't place full size positions on the winning Eur/Usd, Usd/Chf, and Usd/Jpy trades, the results by Monday's open would not have been as substantial. Same goes with the XAG addition at $12.00. That helped tremendously in the IFCN total equity.
Some would say that we were lucky. Well, maybe it would be for others, but for those who trade like us-- it is just taking care of business, and therefore, business is good sometimes.
Week of March 16, 2009---FirststrikePlus trade executions:
*gbp/jpy Short @ 136.71, stopped at 139.09 for 238 pip loss.
*gbp/usd Short @ 1.3993, stopped at 1.4132. for 139 pip loss.
*positions held before March 16th open.
- gbp/usd: Long @ 1.4171, stopped at 1.3980 for 191 pip loss.
- gbp/jpy: Short @ 135.48, stopped at 138.52 for 304 pip loss.
- eur/usd: Long @ 1.3020, exited at 1.3661 for 641 pip profit.
- usd/chf: Short @ 1.1713, exited at 1.1231 for 482 pip profit.
- usd/jpy: Short @ 97.16, exited at 96.14 for 102 pip profit.
OneNightStand trades for Friday, March 20, 2009
-None-
Trading account equity: $1,932.14
Gain from previous week: $ 181.70
Silver position equity: $1,100.00
(Current XAG price: $13.70 – 400 unit position average: $10.95)
TOTAL Equity: $3,032.14
We probably won't have as fantastic of a week for a while, but I always enjoy a sharp lift like this one. The rest of you who executed the trades are no doubt happy you did.
I have a quick email sent the other day:
Hi Joel,
Thank you for your efforts to drag us into success. :-)
I will go for it!
One question.
Why do you prefer owning physical gold instead of
riding the trend with Oanda's spot gold or with
futures?
Are you afraid of there may be times when we
cannot have access to our funds in the banks?
If the above is true then a safe in a bank is not
an option either to store physical gold.
So take the gold home with you?
Thanks for your help. -J-
-----
My answer is below:
Gold is ok.
Silver is better. Greater upside potential.
You are basically correct about storing your precious metals in banks.
There are too many historical precedents about metal being absconded with,
for various reasons, non of which benefit the precious metal holder.
Keep it safe somewhere else. Your creativity will likely find a great
place to protect your precious metal.
Joel
Thanks for the input. Have a good week.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Saturday, March 21, 2009
Welcome Trend Week! -IFCN Wk 67 - Friday, March 20, 2009
This week was indeed a solid trend week.
Friday we finally got stopped out of the short Gbp/Jpy entered early in the week. I never liked that trade, and figured that it had 90% odds of getting stopped out when I took it. It was.
As a side note it was good for us this week that we are in the custom of taking just the first FSP trade per pair. After the long Gbp/Usd trade got elected at 1.4171 and subsequently got stopped out, the week's short trade at 1.3885 would have been triggered and then stopped out for a second loss. But if you had taken the buy at 1.4171 again for a third trade, by Friday's close you'd be up about 265 pips on the final trade, off-setting a lot of the losses previously incurred.
As you can imagine, the important thing is remaining consistent, trade YOUR plan and deviate only when some incredibly obvious bus is about to run you over. Which doesn't happen that often.
But, that all being said – great results have been had with our remaining three forex pairs and, of course, our enhanced silver position.
There were no OneNightStand trades on Friday, not that it didn't get pretty close on the Eur/Usd and Usd/Chf.
This kind of week makes you glad that you execute as you know you should, despite the multiple losses that can take place over weeks in between the large profits. Another reason why “many are called, few are chosen”, for this business.
I got a couple of very interesting emails recently which may be very useful for others of you who are trying to improve your trading acumen.
-----
Hey Joel,
I have now been following your blog for a full year now and I have learned a lot about trading from you. Since following your blog, I am up 213% on my account. It has been hard to learn the discipline required, but I have taken every trade the systems required. I really appreaciate what you have done for me!
Thanks, Bxxxx Pxxxxx
*********************
Hi Joel!
It is unbelievable, many thanks for your help!
Your knowledge and your help is the best I ever had since I trade Forex.
I trade FSP every week, sometimes with a bigger risk, sometimes with a smaller risk, it depends of the market situation.
I've traded around 8 years, and since around 2 years I haven't lost money; ok, I earned a little bit from my trading. But I can forget everything I did before. I thank you sooooooo much for helping me to have success in Forex trading.
I also bought 300 units silver at around 9.0000,-- , BUT the panic came :-) and I sold around 150 units.............. I know, that was not so good!
But I bought again at the Dips an have now again 490 units, and I don't give it back!!!!!!!!
My account is too small to trade full time now, but with your help I hope to become a full time trader as soon as possible, and I am very thankful for every help I get from your newsletter.
I wish you a nice weekend.
Greetings from ice cold Austria (30 cm snow today)!
Exxxxx
-----
Thanks for the kind emails. I'm glad you are taking the trades consistently. Even if you trade very small size at the beginning, (which is one of the great things about Oanda) the regimen of correct trading does great benefit for your future success. Even if the method you were trading was just break-even on results, accurate execution would provide you tremendous benefits to carry over to a time when you obtain a superior method. Execute, execute, execute is the same foundation of truth for trading that “location, location, location” is to real estate investing.
It is only difficult at the beginning. It definitely gets easier when you've done it every day for at least a year. Like most things of value, it needs to become a habit.
Joel Rensink
-----
Loss trades this week:
Week's recap on Monday morning.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Friday we finally got stopped out of the short Gbp/Jpy entered early in the week. I never liked that trade, and figured that it had 90% odds of getting stopped out when I took it. It was.
As a side note it was good for us this week that we are in the custom of taking just the first FSP trade per pair. After the long Gbp/Usd trade got elected at 1.4171 and subsequently got stopped out, the week's short trade at 1.3885 would have been triggered and then stopped out for a second loss. But if you had taken the buy at 1.4171 again for a third trade, by Friday's close you'd be up about 265 pips on the final trade, off-setting a lot of the losses previously incurred.
As you can imagine, the important thing is remaining consistent, trade YOUR plan and deviate only when some incredibly obvious bus is about to run you over. Which doesn't happen that often.
But, that all being said – great results have been had with our remaining three forex pairs and, of course, our enhanced silver position.
There were no OneNightStand trades on Friday, not that it didn't get pretty close on the Eur/Usd and Usd/Chf.
This kind of week makes you glad that you execute as you know you should, despite the multiple losses that can take place over weeks in between the large profits. Another reason why “many are called, few are chosen”, for this business.
I got a couple of very interesting emails recently which may be very useful for others of you who are trying to improve your trading acumen.
-----
Hey Joel,
I have now been following your blog for a full year now and I have learned a lot about trading from you. Since following your blog, I am up 213% on my account. It has been hard to learn the discipline required, but I have taken every trade the systems required. I really appreaciate what you have done for me!
Thanks, Bxxxx Pxxxxx
*********************
Hi Joel!
It is unbelievable, many thanks for your help!
Your knowledge and your help is the best I ever had since I trade Forex.
I trade FSP every week, sometimes with a bigger risk, sometimes with a smaller risk, it depends of the market situation.
I've traded around 8 years, and since around 2 years I haven't lost money; ok, I earned a little bit from my trading. But I can forget everything I did before. I thank you sooooooo much for helping me to have success in Forex trading.
I also bought 300 units silver at around 9.0000,-- , BUT the panic came :-) and I sold around 150 units.............. I know, that was not so good!
But I bought again at the Dips an have now again 490 units, and I don't give it back!!!!!!!!
My account is too small to trade full time now, but with your help I hope to become a full time trader as soon as possible, and I am very thankful for every help I get from your newsletter.
I wish you a nice weekend.
Greetings from ice cold Austria (30 cm snow today)!
Exxxxx
-----
Thanks for the kind emails. I'm glad you are taking the trades consistently. Even if you trade very small size at the beginning, (which is one of the great things about Oanda) the regimen of correct trading does great benefit for your future success. Even if the method you were trading was just break-even on results, accurate execution would provide you tremendous benefits to carry over to a time when you obtain a superior method. Execute, execute, execute is the same foundation of truth for trading that “location, location, location” is to real estate investing.
It is only difficult at the beginning. It definitely gets easier when you've done it every day for at least a year. Like most things of value, it needs to become a habit.
Joel Rensink
-----
Loss trades this week:
- gbp/usd: Long @ 1.4171, stopped at 1.3980 for 191 pip loss.
- gbp/jpy: Short @ 135.48, stopped at 138.52 for 304 pip loss.
- eur/usd: Long @ 1.3020, stop 1.2859. Trade in progress.
- usd/chf: Short @ 1.1713, stop 1.1928. Trade in progress.
- usd/jpy: Short @ 97.16, stop 98.57. Trade in progress.
Week's recap on Monday morning.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Thursday, March 19, 2009
Milestone Equity High- 500% Increase! -IFCN Wk 67 - Thu- Equity: $3,001.25
We had continued good success today with the dollar falling even more against every major currency and silver and gold.
Oil jumped past $51/barrel. The financial world is beginning to realize, as we have for many months-- that the greatest inflationary environment in human history is being unleashed.
Just wait until the hedge funds get some money passed back to them.
The dollar fell for a second straight session and the Eur/Usd easily cleared $1.3700 as traders finally see that massive purchases of U.S. Treasury debt can only do one thing – dilute the world's reserve currency to historic lows.
Recommendation:
Buy silver. The actual physical metal, and take personal possession. Now! (If you haven't read the post about $3.00 Silver Here Again.... click this link)
If you are not going to buy it now, when were you planning on doing it? When it is $30/oz. and you have even less capital available?
-----
FirstStrikePlus is performing very well this week. Despite the Gbp/Usd loss early in the week, at least 3 of the trades are making great strides, the long Eur/Usd, short Usd/Chf, and short Usd/Jpy.
The beauty of FSP is when you have a trend week you can profit on the extreme directional moves, but if you get stopped out of a position it is for a relatively small fixed amount. The exact definition of trend trading in a microcosm.
The week's remaining FirstStrikePlus trades:
Trading account equity: $1,945.25
Silver position equity: $1,056.00
(Current XAG price: $13.59 – 400 unit position average: $10.95)
TOTAL Equity: $3,001.25
So we've hit a new landmark high, exceeding $3,000.00 for the first time on a post. That is more than a 500% return in the last 67 weeks, or 389% annualized. So far the Challenge account is definitely exceeding my intended 50 – 75% returns by a large margin.
Maybe we are overperforming. Maybe we aren't. Extreme times can create extreme profits - if you actually take the trades.
The week isn't over yet, though. We could have some reaction after the sharp moves of the last few days.
If we have any OneNightStand trades for Friday, it will almost certainly be a long Eur/Usd or Gbp/Jpy. The other pairs are way out of range, and if they were elected would be low probability performers.
See you tomorrow!
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Oil jumped past $51/barrel. The financial world is beginning to realize, as we have for many months-- that the greatest inflationary environment in human history is being unleashed.
Just wait until the hedge funds get some money passed back to them.
The dollar fell for a second straight session and the Eur/Usd easily cleared $1.3700 as traders finally see that massive purchases of U.S. Treasury debt can only do one thing – dilute the world's reserve currency to historic lows.
Recommendation:
Buy silver. The actual physical metal, and take personal possession. Now! (If you haven't read the post about $3.00 Silver Here Again.... click this link)
If you are not going to buy it now, when were you planning on doing it? When it is $30/oz. and you have even less capital available?
-----
FirstStrikePlus is performing very well this week. Despite the Gbp/Usd loss early in the week, at least 3 of the trades are making great strides, the long Eur/Usd, short Usd/Chf, and short Usd/Jpy.
The beauty of FSP is when you have a trend week you can profit on the extreme directional moves, but if you get stopped out of a position it is for a relatively small fixed amount. The exact definition of trend trading in a microcosm.
The week's remaining FirstStrikePlus trades:
- eur/usd: Long @ 1.3020, stop 1.2859. Trade in progress.
- gbp/jpy: Short @ 135.48, stop 138.54. Trade in progress.
- usd/chf: Short @ 1.1713, stop 1.1928. Trade in progress.
- usd/jpy: Short @ 97.16, stop 98.57. Trade in progress.
Trading account equity: $1,945.25
Silver position equity: $1,056.00
(Current XAG price: $13.59 – 400 unit position average: $10.95)
TOTAL Equity: $3,001.25
So we've hit a new landmark high, exceeding $3,000.00 for the first time on a post. That is more than a 500% return in the last 67 weeks, or 389% annualized. So far the Challenge account is definitely exceeding my intended 50 – 75% returns by a large margin.
Maybe we are overperforming. Maybe we aren't. Extreme times can create extreme profits - if you actually take the trades.
The week isn't over yet, though. We could have some reaction after the sharp moves of the last few days.
If we have any OneNightStand trades for Friday, it will almost certainly be a long Eur/Usd or Gbp/Jpy. The other pairs are way out of range, and if they were elected would be low probability performers.
See you tomorrow!
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Up 13% in a Day! Thanks Ben! -IFCN WK 67 - Thu- Equity: $2,648.49
Wow!
Gold – sharply higher
Silver – sharply higher
Treasury bonds – sharply higher
Stocks – sharply higher
Currencies – sharply higher
See the important trend change on the daily Eur/Usd chart. Notice the parallel trendlines crossed.
Tuesday I mentioned that there was “Quite a showdown situation building.” and that “Maybe something spectacular will happen later in the week.” I'm glad it did.
Even I was surprised by the scope of the Fed's announcement. Not by the actions themselves, but by making it so completely clear that they will weaken the dollar by any means they have at their disposal and that no one is going to be able to keep up. That my good traders is a throw-down of a gauntlet .
In a move that some have referred to as greater in importance than the Plaza Accord (http://en.wikipedia.org/wiki/Plaza_Accord), the Fed told everyone in terms impossible to ignore..., they “guarantee” to the weaken the Dollar.
I'm just amazed at how many in the financial world haven't been listening to Bernanke and his constant prose (and actions) that he is going to keep things going if he has to drop money from helicopters. With the unlimited powers bestowed on him by whomever you can count on him pushing the big red cash button anytime he feels the vapors.
Interestingly, I had forgotten that an announcement was to be made Wednesday afternoon. (CST)
3 minutes before the announcement I calmly bought a particularly large add of Eur/Usd at 1.3109 with a 10 pip stop. (Golden Pip Method) God only knows what my fill would have been on the stop if it had been elected with an equally intense surprise move downward!
All of a sudden I saw the Euro streaking up the 1 minute chart like a emergency signal flare. I thought my data feed had misfired and was giving me faulty data. I checked the Usd/Chf and gold and silver and sure enough- something huge was underway.
I speed-dialed my trading accomplice in Regina, Sask. with, “What the hell just happened?” As I said it, I remembered that there was a 2 day Fed meeting this week and was confirmed when my buddy's news feed was spewing the details of the news release.
It was amazing to see again..., how powerful one's beliefs of what is really going on in the markets can make or break you. Having a plan of action based on reality, letting the markets own action dictate your positions is the only prudent one. It is much more effective than taking clues from the socialist-leaning homilies of the non-traders at CNN.
To complete the story of my Eur/Usd trade mentioned above, I exited 355 points higher an hour later. Not bad for a 10 pip risk. Needless to say, this was a particularly profitable day, only possible because market action tends to anticipate capital flow.
If a trader, because of some fundamental reason, steadfastly believed that the dollar is going to remain strong indefinitely and bet accordingly in the markets-- he could lose an unlimited amount of money if this peak in the dollar remains the high for the next few years. Having positions based on real, immediate capital flows enables you to be right or get right as quickly as the market moves.
FirstStrikePlus got us into the last 3 positions this week and overall the look very good. If the Euro and Swiss franc keep gaining on the dollar there could be much greater profits over the coming months.
Tuesday's action gave the Challenge account another bonus. Before the Fed announcement I had an XAG resting buy order for 100 units @ 12.00 which also got filled before the Fed announcement. So I have a total position size of 400 units of XAG with an average price of $10.95. With the snapback in XAG (silver) the addition has helped the XAG portion of the Challenge account.
The week's current FirstStrikePlus trades:
eur/usd: Long @ 1.3020, stop 1.2859. Trade in progress.
gbp/jpy: Short @ 135.48, stop 138.54. Trade in progress.
gbp/usd: Long @ 1.4171, stopped at 1.3980 for 191 pip loss.
usd/chf: Short @ 1.1713, stop 1.1928. Trade in progress.
usd/jpy: Short @ 97.16, stop 98.57. Trade in progress.
FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit)
Trading account equity: $1,892.49
Silver position equity: $756.00
(Current XAG price: $12.84 – 400 unit position average: $10.95)
TOTAL Equity: $2,648.49
It is good to see some decent trades in FirstStrikePlus again. It is one thing to expect moves, but another to actually take the trades.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
Gold – sharply higher
Silver – sharply higher
Treasury bonds – sharply higher
Stocks – sharply higher
Currencies – sharply higher
See the important trend change on the daily Eur/Usd chart. Notice the parallel trendlines crossed.Tuesday I mentioned that there was “Quite a showdown situation building.” and that “Maybe something spectacular will happen later in the week.” I'm glad it did.
Even I was surprised by the scope of the Fed's announcement. Not by the actions themselves, but by making it so completely clear that they will weaken the dollar by any means they have at their disposal and that no one is going to be able to keep up. That my good traders is a throw-down of a gauntlet .
In a move that some have referred to as greater in importance than the Plaza Accord (http://en.wikipedia.org/wiki/Plaza_Accord), the Fed told everyone in terms impossible to ignore..., they “guarantee” to the weaken the Dollar.
I'm just amazed at how many in the financial world haven't been listening to Bernanke and his constant prose (and actions) that he is going to keep things going if he has to drop money from helicopters. With the unlimited powers bestowed on him by whomever you can count on him pushing the big red cash button anytime he feels the vapors.
Interestingly, I had forgotten that an announcement was to be made Wednesday afternoon. (CST)
3 minutes before the announcement I calmly bought a particularly large add of Eur/Usd at 1.3109 with a 10 pip stop. (Golden Pip Method) God only knows what my fill would have been on the stop if it had been elected with an equally intense surprise move downward!
All of a sudden I saw the Euro streaking up the 1 minute chart like a emergency signal flare. I thought my data feed had misfired and was giving me faulty data. I checked the Usd/Chf and gold and silver and sure enough- something huge was underway.
I speed-dialed my trading accomplice in Regina, Sask. with, “What the hell just happened?” As I said it, I remembered that there was a 2 day Fed meeting this week and was confirmed when my buddy's news feed was spewing the details of the news release.
It was amazing to see again..., how powerful one's beliefs of what is really going on in the markets can make or break you. Having a plan of action based on reality, letting the markets own action dictate your positions is the only prudent one. It is much more effective than taking clues from the socialist-leaning homilies of the non-traders at CNN.
To complete the story of my Eur/Usd trade mentioned above, I exited 355 points higher an hour later. Not bad for a 10 pip risk. Needless to say, this was a particularly profitable day, only possible because market action tends to anticipate capital flow.
If a trader, because of some fundamental reason, steadfastly believed that the dollar is going to remain strong indefinitely and bet accordingly in the markets-- he could lose an unlimited amount of money if this peak in the dollar remains the high for the next few years. Having positions based on real, immediate capital flows enables you to be right or get right as quickly as the market moves.
FirstStrikePlus got us into the last 3 positions this week and overall the look very good. If the Euro and Swiss franc keep gaining on the dollar there could be much greater profits over the coming months.
Tuesday's action gave the Challenge account another bonus. Before the Fed announcement I had an XAG resting buy order for 100 units @ 12.00 which also got filled before the Fed announcement. So I have a total position size of 400 units of XAG with an average price of $10.95. With the snapback in XAG (silver) the addition has helped the XAG portion of the Challenge account.
The week's current FirstStrikePlus trades:
eur/usd: Long @ 1.3020, stop 1.2859. Trade in progress.
gbp/jpy: Short @ 135.48, stop 138.54. Trade in progress.
gbp/usd: Long @ 1.4171, stopped at 1.3980 for 191 pip loss.
usd/chf: Short @ 1.1713, stop 1.1928. Trade in progress.
usd/jpy: Short @ 97.16, stop 98.57. Trade in progress.
FirstStrikePlus trades will be exited on Mondays at 00:00 CST if profitable. (First-Profitable-Open Exit)
Trading account equity: $1,892.49
Silver position equity: $756.00
(Current XAG price: $12.84 – 400 unit position average: $10.95)
TOTAL Equity: $2,648.49
It is good to see some decent trades in FirstStrikePlus again. It is one thing to expect moves, but another to actually take the trades.
Joel Rensink
www.infiniteyield.com
PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!
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