Forex Tips and Tricks

Trading is beginning to wind down for the holiday period. Be careful trading during periods of lower volume. I am off doing other things for a couple of weeks.

If you would like to read a good book about the psychology of trading over the holidays, I recommend Trading in the Zone by Mark Douglas.

Happy Holidays to everyone!!!

I'll be back Tuesday January 8th 2013.

Michael Bridgman www.privateforexcoaching.com

Questions - email Michael@privateforexcoaching.com

Trading is showing signs of being quite erratic this week. As we go deeper into the holiday season, trading volumes decrease and the chart setups are less clear. When this happens, it's best not to trade. You must be extremely disciplined to make money trading. During holiday periods, it's harder than normal, because the largest traders step away from the market, but they will be back!

The CHF looked best to me of the majors overnight, but I could not find a satisfactory trade setup.

The market is not going anywhere. In January the trade setups will become clearer once again.

I will be travelling on Tuesday but will check for trades during Wednesday's UK session.

Have a wonderful weekend!

Back Wednesday...

Michael www.privateforexcoaching.com

It took a while to find a trade, but after the US economic news releases were out of the way, the AUD set up nicely, allowing us to enter with a small stop and a 4:1 Reward to Risk ratio.

This trade was so easy to manage that I haven't marked in the "take profit" areas as the trade progressed downward. Very few trades are this easy. Always remember to move your "take profit" down to protect yourself against a sudden and very abrupt reversal. This can happen when you get up and walk away to stretch or as quickly as being distracted for a few moments by a telephone call or other interruption. Be very disciplined and avoid distractions while trading. Alarms are useful, but stop losses and take profit orders entered with your broker will assure you of no surprises.

Back tomorrow to wrap up the week.

Good luck with your trading in the meantime!

Michael www.privateforexcoaching.com

EUR looked good and had an excellent Reward to Risk ratio setup of almost 6:1 overnight. These are extremely attractive trade setups and hard to resist - if everything else adds up.

The Asian session high and yesterday's high were at the same level. When the UK traders broke this level and then pulled price back, a familiar entry setup presented itself. Price had been stair stepping higher and the trade required a very small stop of approximately 10 pips for a potential 59 pips of reward. This trade was very easy to manage and offered 25 pips of reward.

Volumes seem to be tapering off a bit. Is this due to the holiday season approaching - which will naturally slow down trading, or is it due to the FOMC statement mid US session? Who knows?

Assuming that volumes will continue to taper off as we get into the holiday season, it is best to keep stops tight and continue to manage trades prudently, as always. When volumes lighten, price tends to get erratic and chart patterns appear less clear.

Be careful trading in such an environment and be very selective with your setups.

Good luck as always!

Michael www.privateforexcoaching.com

A common characteristic of successful traders is that they have found a strategy that works for them. This strategy enables them to trade with a high probability of success. They use this strategy methodically over and over with each trade. Trading is routine and almost mechanical to them. If a trade fits their criteria, they take it, if not - they walk away.

A pervasive characteristic of unsuccessful and inconsistent traders is they lack rules, discipline and a clear trading method. Frequently they jump about mixing and matching different techniques and or chasing lagging indicators in search of a mythical trading holy grail.

Successful traders are patient, disciplined and focused.

None of the majors met our trade criteria overnight.

Know what you are looking for and when best to find it. If it doesn't present itself, look elsewhere and if it's not there, come back tomorrow.

Good luck with your trading this week!

Back tomorrow.

Michael www.privateforexcoaching.com

Questions??? Michael@privateforexcoaching.com

After a very slow week and a short one for us, because we never trade NFP Friday, we found a wonderful trade in the EUR. It's been a frustrating couple of weeks as the pairs have not been moving as much as usual and nice setups have been delivering much less than we are used to. However the trading week ends with a very encouraging trade. I don't usually show critical areas on these charts, but my students will recognize its significance.

We will not be trading tomorrow... back Tuesday.

Good luck in your trading and have a wonderful weekend!

Michael www.privateforexcoaching.com

The AUD set up nicely with lower highs, a wash and rinse and a Reward to Risk of 4:1 to our target 2. Unfortunately the market had other plans and we made modest gains in what looked like a trade with lots of potential. The market move was quite shallow, but it gave us a clear reversal sign with a very wicky candle which coincided with another tool that we use. We always watch the market for familiar signals and trade accordingly. This trade had many features that made me inclined to think that there was a really good move pending, but it wasn't to be, so I won't get into them.

Slim pickings so far this week.

Back tomorrow to wrap up this week.

Michael www.privateforexcoaching.com

Questions Michael@privateforexcoaching.com

Modest EUR gains to start the month of December. After a series of higher lows and luring in breakout traders, the EUR pulls back, then forms another higher low. It's unusual to see yesterday's high and the Asian session high so close together. The Reward to Risk exceeds our minimum 3:1 ratio to our Target 2. We enter long and patiently watch price test and retest the Asian and yesterday's high. Price begins to climb but does not reach our Target 1. After seeing a very wicky candle, implying a reversal may be imminent, we exit for modest gains at the opening of the next candle.

The month of December has arrived and trading will slow down in advance of the holiday season. Let's hope we can find lots of good trades before the volume fades and trading becomes erratic.

Good luck with your trading!

Michael www.privateforexcoaching.com

Questions - Michael@privateforexcoaching.com

The EUR made a nice move from yesterday's high to its Asian session low before reversing. The signals were very clear and the Reward to Risk exceeded our minimum of 3:1 to our Target 2. The USD crosses move very similarly and it was more a matter of choosing your favourite setup.

Always be aware of yesterday's high and low as well as the Asian session high and low. These are critical levels for intraday traders.

This trade proceeded well until it bounced hard off the Asian session low. Not wanting to give back any more pips, the trade is closed the next candle. Although our targets were not hit, we are pleased with the trade. If you know what to look for, then you know when the market presents it... the rest is trade management.

Back Tuesday and it will be a shorter week for us, as we do not trade the NFP Friday sessions.

Have a great weekend!

Michael www.privateforexcoaching.com

Questions Michael@privateforexcoaching.com

A familiar pattern emerged with a move above the Asian session high to lure in the breakout traders. Price then pulls back and chops back and forth between the mid and top of the Asian session range. The candles have an identical but opposite direction setup as yesterday. The Reward to Risk is greater than 4:1. We go long, price tests the Asian session high and yesterday's high before moving toward our targets. Unfortunately a very wicky candle appears indicating a potential reversal. We close the trade for modest gains. The trade appeared to have lots of potential but it wasn't to be.

Let's hope for a nice move tonight to end the trading week.

Good luck with your trading!

Back tomorrow.

Michael www.privateforexcoaching.com

Questions - Michael@privateforexcoaching.com

The market took its time to set up overnight amid a very light economic news schedule. The GBP looked good to the downside following two bearish candles with the second one being very wicky. By entering on the opening of the next candle , our reward to risk minimum of 3:1 to our Target 2 was available with a relatively small stop.

Entering near the middle of a range is not a favourite entry point, but a series of lower highs and 2 back to back bearish candles with the second one being very wicky coupled with a relatively small stop made this trade attractive. We anticipate that the trade will test and retest the Asian session low. We protect our trade accordingly by lowering our stop, now "take profit" - thereby removing the risk from the trade. Price moves down to our Target 1, and we protect this level and the trade is closed on the next candle. Price continued down without us to Target 2, pulls back, creates a higher low and the reversal move is under way.

Good luck with your trading!

Back tomorrow.

Michael www.privateforexcoaching.com

Send any questions to Michael@privateforexcoaching.com

The AUD made a series of lower highs. This trade just barely made our minimum Reward to Risk of 3:1 to our Target 2. The trade moved fairly quickly to our Target 1 and we always protect that level. I forgot to mark in the "take profit" levels on the chart as the trade progressed. Not a bad trade to begin the week. Note how 2 higher lows illustrate the reversal.

Let's hope for a good week of trading. More positive economic news releases are showing up of late. It doesn't mean that we are out of the woods, but it's nice to see.

Always be disciplined in your trading.

Back tomorrow...

Michael www.privateforexcoaching.com

Send questions to Michael@privateforexcoaching.com

Optimism returns to the market. The GBP had an exceptional session and was catapulted to the upside by the US traders. After a tricky 2 weeks, we are rewarded with a very large upside move. This trade could have been a loss, if the stop loss had not been below structure.

Price made a familiar pattern of enticing breakout traders into the market, then pulled back. Our criterion of 3:1 minimum Reward to Risk was met. After our entry, price pulled back one more time, before rising back into the Asian session, where it retested the low, and then moved up. By protecting our profits in the usual manner, and not being greedy, we were able to exceed our profit level considerably.

Trading is best taken one day at a time. Some days are difficult but some days are extremely rewarding. There appears to be some surprisingly positive news lately and the trading ranges are expanding once again.

Have a wonderful weekend!

Back Tuesday.

Michael www.privateforexcoaching.com

Questions... Michael@privateforexcoaching.com

The EUR which has been moving up all week finally gave us an entry. After making a series of higher lows, the UK traders test the Asian session high, then it pulls back down with all the news releases, forms another higher low, followed by a very bullish engulfing candle. With a stop below the higher swing low, and a reward to risk of greater than 3:1 to our Target 2, we enter long. We anticipate a test and retest of the Asian session high and vigilantly watch price action. Price rises through the Asian session high, makes a shallow pullback forming another higher low above the Asian session. Price then proceeds to our Target 1 - a level of profit we always protect! Price does not close above it and we close the trade happy with what the market has offered.

Always pay close attention to yesterday's high and low and the Asian session high and low. Watch how price reacts around these levels.

Happy Thanksgiving USA.

Best of trading!

Michael www.privateforexcoaching.com

Questions Michael@privateforexcoaching.com

The AUD continues to look clearest amongst the majors to trade. A very small stop loss combined with our minimum Reward to Risk ratio made this trade setup look attractive. The EUR and GBP continue to be too difficult to find an appropriate trade setup meeting our criteria. The AUD looked good, but it didn't give us many pips, and that's trading. We can only strive for what the market is willing to give us.

A holiday in the U.S. and Japan tomorrow but not in the UK.

Happy Thanksgiving U.S.A.!

Back tomorrow...

Michael www.privateforexcoaching.com

Questions Michael@privateforexcoaching.com

The AUD continues to look clearest to me of the majors. After putting in a series of lower highs an entry is taken with a modest stop loss just above structure. This trade had a Reward to Risk ratio of 4:1 to our Target 2 - meeting our criterion of 3:1 minimum. The trade was a little slow to get going as price continued to retest the Asian session low despite already having closed below it. This is not unusual. Price then moves down and just as the trade appears to have legs to the downside, it retraces more than halfway up the large preceding bearish candle, taking us out of the trade for a very modest gain.

There is lots of EUR news this week and Euro meetings. Thursday will be a holiday in the U.S. and Japan.

Let's hope for a better session tomorrow.

Michael www.privateforexcoaching.com

Questions Michael@privateforexcoaching.com

The AUD pulled through and set up with a near 5:1 Reward to Risk ratio trade today. I'm not Aussie obsessed this week, it has just been an easier pair to trade that the other majors. Some weeks are tough to find trades and this was one of them. It's always nice to end the week with a positive trade.

Although it wasn't until the US session got underway - the AUD set up nicely requiring a very small stop loss and a very acceptable return to our Target 2. We got clipped just short of our Target 1 due to the spread, but it was still a nice trade to end the week.

It's best to make sure your stops are strategically placed and move them in the direction of your trade while you manage it. Use strategic levels to protect your profits or keep them very tight. The markets have been reversing with momentum and there are some very major news events occurring which appear to be making the markets very volatile.

Let's hope for an easier week next week.

Enjoy your weekend!

Michael www.privateforexcoaching.com

Questions??? Michael@privateforexcoaching.com

With the pending news in the US session, FOMC and Dr. Bernanke speaking later today, I had hoped for a trending UK session, but didn't get it. The AUD looked good in this otherwise tedious session, but it did not offer the minimum 3:1 Reward to Risk ratio. There are cheap stop losses and there are conservative stop losses. There is no point in being cheap, getting stopped out and having a trade go to one's target because we were placing a stop loss a few pips closer to price than where we should have placed it. A trader has to decide which one they prefer with nearly every trade. When the R:R ratio isn't there, it's better to walk away and look for a trade elsewhere. Always be disciplined, patient and focused!

After 2 really nice weeks, we can't complain about this one being slow.

Good luck with your trading.

Back tomorrow...

Michael www.privateforexcoaching.com

Questions??? Michael@privateforexcoaching.com

The AUD makes a nice move overnight. After 2 really nice weeks of trading, this week is proving to be a little more difficult. Although it looks like closing the AUD trade overnight at Target 1 was a little too soon, some trades work out that way.

I would rather keep the majority of my daily target and miss out on some pips, than give them back by being too loose with my stop loss and undisciplined. Greed and poor trade management can destroy an account. Always be disciplined when trading and abide by your rules.

Good luck with your trading.

Back tomorrow...

Michael www.privateforexcoaching.com

The EUR was a tempting trade after the German ZEW economic release. The other majors appeared too difficult to trade. The EUR although tempting did not meet our Reward to Risk ratio of 3:1 so we passed on the trade. As a trader, we must have rules and abide by them. If a high probability trade setup presents itself and meets our reward to risk minimum, we evaluate the trade. If the setup is less clear and does not meet our reward to risk ratio minimum, we look for a trade elsewhere or we come back tomorrow. We do not take 50-50 trades. We take high probability setups that are clear to see and meet our criteria. We passed on trading this setup.

The week is young.

Back tomorrow...

Michael www.privateforexcoaching.com

The Aussie offered up a nice trade overnight with a greater than 3:1 reward to risk ratio setup. The EUR and GBP also looked good to trade at the same time, but did not meet our 3:1 R:R minimum.

The AUD made lower highs toward the end of the Asian session, then dropped sharply as the UK traders began their day. After a pullback forming another lower swing high, followed by a very bearish candle an entry is taken with a stop just above the lower swing high. We remove the risk from the trade as soon as is prudent to do so and protect our profits by moving our "take profit" down as the trade progresses.

We close the trade after our Target 2 is reached to end the week. Never be greedy and always protect your profits...the market can reverse in a blink.

It's been a wonderful week for trading with many crystal clear setups.

Enjoy your weekend!

Back Tuesday...

Michael www.privateforexcoaching.com

The EURGBP set up nicely with a lower high overnight and confirmed the entry in advance of the GBP's big move. This pair has once again been very tradeable over the past week. This trade set up with a greater than 5:1 Reward to Risk ratio.

Although the trade did not reach our Targets 1 & 2, we were very happy with the result.

It's been another great week for trading, and we will be very careful not to give any of it back tonight. Always be patient and selective with your trade setups. Take the easy ones and walk away from the confusing ones.

Good luck with your trading!

Back tomorrow.

Michael www.privateforexcoaching.com

Beautiful trade setup and very active session - thanks in large part to the US election results.

The Asian session was very active as the election results indicated President Obama was re-elected. As the UK traders began their session they sold off the EUR and after a pullback which resulted in a lower high with a wicky candle, followed by a bearish candle, an entry short is taken, with a stop loss just above the wicky candle high. This met our reward to risk with a 4:1 ratio. Price moved down promptly to yesterday's high - which it retested, then moved down and through our Target 1 - where we do not give back profits once attained. The trade progressed through our Target 2, and through the Asian session and yesterday's lows. We close the trade on the next candle as price begins to move up, to protect our profits.

Exceptional day with exceptional profits.

It's rarely this easy!

Back tomorrow.

Michael www.privateforexcoaching.com

Lots of very important economic news releases this week, not the least of which will be the result of of the US Presidential election today. This could be a volatile week, so be careful and keep stop losses tight.

The EUR set up for an excellent reward to risk ratio trade of greater than 5:1 but neither of our Targets was reached. After getting a quick surge to the upside and riding out a pullback that didn't threaten our initial stop loss at any time, the trade was eventually closed after a very wicky candle implying a top or reversal. We protected our modest gains and closed the trade on the next candle.

There will be lots of news this coming session to be aware of, as well as the markets reaction to the US elections.

Be very careful with your trading.

Back tomorrow.

Michael www.privateforexcoaching.com

AUD set up as a nice trade overnight. After initially dropping after the UK open and moving down near the Asian session low, it moves up with several very wicky candles pushing off the bottom. After a higher low is made and entry long is taken with a stop loss just below the Asian session low. Price moves up, pulls back and forms a series of higher lows...enabling us to move our "take profit" up with each swing. We close the trade at Target 1 as we are late in the session and a retest of the figure - 1.0400 is very likely. We don't like to give back profits once Target 1 is attained.

It wasn't until yesterday, that it dawned on me, the UK and Europe moved their clocks back last weekend and that I have been off by an hour this week. North America moves their clocks back this weekend and everything will be back in sync next week.

It been a good week for trading.

Non Farm Payroll is tomorrow and I don't trade that day, so I will be back Tuesday.

Enjoy your weekend!

Michael www.privateforexcoaching.com

A nice move down on the EUR once a lower high became evident. The breakout long traders got lucky, so we had to be patient. The CHF confirmed the EUR move and AUD also set up nicely.

The UK traders faked short at the open, then reversed the EUR upward taking all the breakout longs along for the ride. Price peaked then put in a lower high with a hammer-like wicky candle. An entry short at the open of the next candle met our 3:1 minimum reward to risk ratio. Price moved down allowing us to take the risk out of the trade and move our "take profit" down above structure. Although neither of our targets is hit before the UK close, the trade worked out very nicely.

Good luck with your trading and always be selective and patient with your trade set-ups.

Back tomorrow.

Michael www.privateforexcoaching.com

Very modest EUR trade gain to begin the week. A very rare trade placed in front of the news due to my not believing that the Italian Bond Auction would be a big market event and a 10 pip stop made the trade very affordable. With a better than 3:1 reward to risk ratio, a long trade is taken, but after Target 1 is obtained, we are closed the next candle, as we protect our Target 1 profits. Target 2 is also hit but without us.

Last week was a great week. This week we start off modestly. We will not be trading Friday as it will be the Non Farm Payroll release. Hopefully we will find some good trades tomorrow and Thursday.

Back tomorrow.www.privateforexcoaching.com

Michael

The EUR offered up a nice trade again, to end the week. As the UK session began, the European economic news was released and behind us. The next pending news would be in the US session. The EUR traded sideways then began to rise but did not take out the Asian session high. Price then reversed and a short trade was taken. This same setup is mirrored with the CHF confirming the trade direction.

Price moves to the Asian session low and closes before dropping to our Target 1 level. I teach my students to not give back profits once Target 1 is hit. We close the trade on the next candle to protect our profits and end the trading week.

It's been a great week for trading!

Enjoy your weekend!

Back Tuesday.

Michael www.privateforexcoaching.com

Beautiful EUR trade setup with a reward to risk ratio of near 6:1. This trade offered 2 entries with very little risk for either. With no European economic news releases of consequence, a trade short is taken after the wicky candles indicated the top was in place. An alternate entry followed with a lower high and a bearish engulfing candle. The risk was removed early as the trade progressed down and our stop loss continued to be moved down to protect our profits. It looked like our Target 2 would be hit in advance of the London close, but it wasn't to be. As opposed to giving back a few pips to get 4 or 5 more...the trade is closed.

It has been a great week! The majors are moving well again - including the GBP...which is nice to see. I was wondering if we would have to wait until after the US election.

Not every week will be as kind as this week has been - so this makes up for the dull boring ones, when the signals are less clear.

Back tomorrow and remember the words below by Curtis Faith.

Michael www.privateforexcoaching.com

"Trade with an edge, manage risk, be consistent and keep it simple."

Curtis M. Faith - who earned more than $30 million dollars trading for Richard Dennis

The GBP is once again showing signs of life. The EUR got away from us overnight, but the GBP looked good once the "wash and rinse" was completed. This trade was acceptable as it met our 3:1 reward to risk minimum criterion.

A surprisingly bad economic news release out of the UK did nothing to dampen the rise of the currency. After our entry, price rose to our Target 1 level and pulled back forming another higher swing low. As price struggled to rise and close above our Target 1, we closed the trade to lock in Target 1 profits. I teach my students not to give back profits once Target 1 is obtained. By leaving the stop loss now "take profit" just below structure, we would be giving back pips, so it is safer to lock in the profits and return another day. As it turned out, price moved up strongly just an hour later beyond our Target 2 - in one candle.

The week continues...

Be methodical with your trading and never chase trades!

Back tomorrow.

Michael www.privateforexcoaching.com

A wonderful way to start the trading week! There were lots of trades that set up during the UK session. The EUR is usually my first choice - if all things are equal. After testing the Asian session low and pulling back somewhat gently, our trade set up. With a stop just above the pullback high and a greater than 4:1 reward to risk ratio to our Target 2...(meeting our 3:1 RR minimum), we enter short. Price pushes through yesterday's low and pulls back briefly before plunging through our Targets 1 & 2 in the same candle. We close the trade as the candle is about to close...delighted to start the week with such a nice trade.

Take what the market offers and don't be greedy.

Back tomorrow.

Michael www.privateforexcoaching.com

A relatively sedate end to the week. The EUR continued to make lower highs and after not re-testing the Asian session high, we chose to go short. There wasn't any EURO economic news releases scheduled, and the EU Economic Summit moved into Day 2 (yawn).

The trade enabled us to have a very inexpensive stop just above the Asian session high, and our concern was to get through yesterday's low and the Asian session low without being whipsawed. These levels were tested and re-tested as expected, and the trade seemed to run out of gas as it passed through the Asian session low - where we would expect breakout sellers to enter the market. We tightened our stop - now "take profit" accordingly and ended up with a modest gain to end the week.

Back Tuesday...

Enjoy your weekend!

Michael www.privateforexcoaching.com

The UK session didn't offer any acceptable reward to risk ratio setups overnight. When this happens, it's best not to trade and come back tomorrow.

Once the Spanish bond auction news result was released and the EUR started to move up, the stop loss would have been approximately 26 pips and Target 2 was approximately 50 pips away. Our minimum is 3:1 meaning we needed Target 2 to be 78 pips away from our entry. We also don't like stops that large. When this happens, it is best to look at other pairs and when they don't offer better trade setups, we walk away.

"Trade with an edge, manage risk, be consistent and keep it simple."

Curtis M. Faith - who earned more than $30 million dollars trading for Richard Dennis

Back tomorrow...

Michael www.privateforexcoaching.com

Commodity pairs made large moves overnight. Both the CAD and AUD strengthened against the USD. The AUD is usually easier to trade and it set up with a very low risk trade. Once all major economic news releases were behind us, we entered long with a very cheap stop, giving us a 4:1 reward to risk ratio trade setup. Price moved up above the Asian session highs and continued to Target 1 and up to Target 2. At Target 2, we know that price is much more likely to pull back than to advance further. We closed the trade on the next candle - as the spread kept us from being closed when Target 2 was touched.

The AUD appeared to get a second wind and rose even higher... but without us. Keep it SIMPLE and NEVER be greedy!

The week continues...

Good luck with your trades!

Michael www.privateforexcoaching.com

The EUR set up nicely for us once the German ZEW release came out. After a large news candle down - a bottom was put in and the EUR moved up to our Target 2. Protecting our profits as the trade moved in our direction as always...we captured a better than 5:1 reward to risk trade. When you spot these...they can really help make your weekly trading goals.

Off to a good start for the week.

See you tomorrow.

Michael www.privateforexcoaching.com

The CHF looked better to me last night than the EUR. There was no significant economic news for us to wait through. A very inexpensive stop coupled with a greater than a 5:1 reward to risk makes this trade very attractive. Moving our stop down to just above the lower swing highs keep us in profit and our Target 1 and 2 are hit on the same candle.

The concerns for this trade were getting through the Asian session low and having price swing up and take us out at our stop...the classic wash and rinse that breakout traders will suffer 80% of the time. The second concern was getting through yesterday's low. Once price got through yesterday's low, we were quickly rewarded.

I'm out of town tomorrow...back here Tuesday.

Good luck with your trades tonight!

Michael www.privateforexcoaching.com

Quiet trading overall in the UK session, but we managed to squeeze some pips out of the AUD. The Aussie dollar had been making higher lows and once the breakout traders jumped in long after the UK session got underway, we waited for the pullback.

This entry allowed us to enter with an 8 pips stop loss and a better than 5:1 reward to risk ratio to our Target 2. The trade progressed fairly quickly allowing us to remove any risk and place our "take profit" below structure. Price seemed to run out of momentum at our Target 1 with a wicky candle closing below our first target. We exited on the opening of the next candle for a few pips.

Let's see what tomorrow brings us.

Good luck in your trading!

Michael www.privateforexcoaching.com

It appears that the EUR will be making headlines this week, but the AUD set up nicely for us overnight. After initially moving down as the UK session got underway, then consolidating, it retraced upward...forming a lower high with wicky candles as it ran out of upside momentum.

We entered short with a stop just above the lower high, with a reward to risk ratio of better than 4:1. After zipping through the Asian session low and barely missing our Target 1 (due to spread) - we tighten our "take profit" and exit for a very nice profit. My students would recognize that after the candle that touched Target 1, price had an 80% chance of retracing upward. This is not due to it touching Target 1, but due to an advanced technique that also tips us off as to when to tighten our "take profits".

Excellent start to begin the trading week.

I will be travelling on Friday, so it will be a short week for me.

Good luck with your trading!

Michael www.privateforexcoaching.com

The EUR made it to both our targets today, but without us. There was a lot of news pending for the GBP, EUR and USD overnight. Price chopped back and forth in advance of it and then reacted positively with the EUR making it to and beyond the 1.3000 level. Expect this level to be tested and retested as it is a major psychological level.

Although the EUR appeared to be making higher lows as the UK session progressed, I chose to stay out of the chop. Once the news was out of the way, the EUR had climbed significantly and our minimum 3:1 reward to risk was not to be found. If the news had been perceived negatively by the market, the drop could have been just as significant.

Always be very cautious of trading before major economic news releases and be especially cautious of trading in advance of an accumulation of major economic news releases - like today.

Tomorrow is Non-Farm Payroll Friday in the U.S. and the market is usually pretty flat in advance of the release. I don't trade it....so I'll be back Tuesday.

Enjoy your weekend!

Michael www.privateforexcoaching.com

A little quieter overnight with no significant EUR economic news. After another quiet Asian session, thanks in part to China being on holidays all week, a favourite pattern emerged as the UK traders came on. The European traders had taken the EUR up starting their session and the UK traders took it down - through the Asian low then snapped it back up after luring in the breakout traders. Although neither of our targets were hit, we are always happy with 30+ pips.

Lots of economic news tomorrow...so be very careful with your trading... especially when the US session begins, as there is an ECB Press Conference and US Employment Claims.

Back tomorrow.

Michael www.privateforexcoaching.com

EUR sets up nicely with a better than 5:1 reward to risk to begin October. No significant European economic news releases to keep us out. This familiar pattern set up after a quiet Asian session enabling us to enter the trade and progressively move our stop loss level to "take profit" as the EUR stair-stepped upward forming higher lows and reaching our Target 1.

This was an excellent trade to start the short week. I do not trade on Non Farm Payroll days...so I will not be trading the UK session on Friday.

Keep in mind that China is off all week and the Asian session may be more subdued as a result. This bodes well for the UK session trading.

Good luck with your trades!

Michael www.privateforexcoaching.com

It's always nice to end the week with one more positive trade. The EUR set up beautifully for us overnight. When price got going, it not only blew through the Asian session low, it took out both targets 1 and 2 in quick order. September has been a very good month and summer seems like long ago.

The EUR trade setup overnight is a favourite of mine, and one I train my students to look for each session. When you find this setup, the rewards can be very satisfying. This trade met our criteria to the letter and the pips followed.

Enjoy your weekend!

Let's see what October brings...back Tuesday.

Michael www.privateforexcoaching.com

GBP sold off ahead of the UK economic news releases. Once the news was out, it moved back up. After the higher low, we entered long, on the opening of the next candle with a stop just below the higher low. We are risking 16 pips for a potential reward of 58 pips...Target 2. This meets our minimum criterion of 3:1 reward to risk.

Our first level of concern will be the Asian session high and then yesterday's high. Price moves through both but closes back below yesterday's high. We chose to lock in 30 pips for a "take profit" level and the trade is closed. Due to this level being where breakout longs will enter, and we are not breakout traders, we protect our profits and move on. As I said yesterday, we will take 30 pips any day.

Let's see what opportunities tomorrow will bring us.

Good luck with your trading!

Michael www.privateforexcoaching.com

Not a lot of news overnight, but the lower highs on the GBP had us looking for the opportunity to go short.

With an affordable stop just above the plunging bearish hammer, we enter short at the opening of the next candle. The reward to risk to our Target 2 is 4:1 easily meeting our criteria minimum of 3:1. Price chops sideways for over an hour attempting to stay below yesterday's low. Once price moves convincingly toward our targets, we move our "stop loss" to a "take profit" locking in 15 pips, then 30 pips, and are subsequently closed by the market for 30 pips.

Always remember to move your stops down and lock in profits. It's always a nice feeling to be in a positive trade with no risk...what is also known as a "stress-free" trade.

Let's see what tomorrow brings.

Good luck with your trading!

Michael www.privateforexcoaching.com

The Asian session range was larger than usual. No significant news was pending during the UK session for either the EUR or GBP but ECB President Draghi was scheduled to speak later in the session.

The UK session began with some choppy sideways price action before putting in a higher low. We enter long with a stop just below the Asian session low... giving us a reward to risk of 4:1 to our Target 2. We anticipate a run up to test the Asian session high before moving to our Target 1 which was a significant area of resistance yesterday - as price collapsed down from there.

Price reaches the Asian session high and closes above it. The next candle is a wicky candle which takes us to President Draghi's pending speech. We close the trade and are happy to take the round number of 50 pips. Do not trade in front of major news events and if you are in a trade... tighten your stops!

We are off to a good start this week.

Good luck with your trading!

Michael www.privateforexcoaching.com

Having learned a long time ago not to trade in front of the news, it always nice to capture some pips when the reversal occurs. As long as the signals are clear - as was the case overnight with the EUR... one can capture the safer move.

The GBP news can affect the EUR as it did overnight. The reverse is also true. If the sentiment for the Eurozone is negative, the GBP typically is sold off too. Last night, traders were awaiting some news before entering the market. A very fast move to the upside was unsustainable as is evidenced by the wicky bearish candle and price not closing above our Target 1. After an hour of consolidation and lower highs, a trade short is taken. Price falls, makes a big move toward the Asian session low and then reverses. Having been up 60 pips, we place our take profit at plus 50 pips and we are closed.

It's been a tricky week to find trades, but it has also been a rewarding week when we did.

Let's see what next week brings us.

Back Tuesday.

Enjoy your weekend!

Michael www.privateforexcoaching.com

Huge moves in the Asian session across the majors, left us without any high probability trade setups that would meet our reward to risk ratio.

It's a little unusual but the Asian session had huge moves yesterday. When this occurs, it signals to me to take the session off. I only look for high probability trades that meet my trading criteria and reward to risk ratio. I pass on anything else. Never trade for the sake of trading. Follow your rules and keep it simple! There may not be high probability trade setups each session, but when they appear, we will take advantage of them and we are rewarded.

Let's see what tomorrow brings us.

Best of trading!

Michael www.privateforexcoaching.com

A GBP trade setup once again! This is my favourite pair to trade. The EUR has been much easier to trade lately, so it's nice to finally find a trade with the GBP. No surprises from the MPC Meeting Minutes and lots of activity just in advance of the UK opening..."railroad tracks" candle formation.

With a lower swing high and no breech of the Asian session high, the pair set up as a short, with minimal risk, meeting our reward to risk criteria. A stop is placed just above the Asian session high. Price quickly moved down and tests the Asian session low. The trade was quickly profitable and we want to remove all risk from the trade, so we move our stop down to the close level of the candle that we entered on. If there is a whipsaw to the upside, we will be taken out without a loss. Price produces a lower high on the pullback test of the Asian session low, then heads down to our Targets. We progressively move our "take profit" down to just above structure of pullback highs and close the trade at Target 2.

After 2 sessions without being able to find a trade that meets our criteria, we are rewarded.

Let's see what tomorrow brings.

Good luck with your trading.

Michael www.privateforexcoaching.com

Rules, rules, rules. If the trade setup is not there, don't trade! This is a profession where we don't get paid to show up at work. We get paid if we are right. We dramatically increase the probability of being correct in our assessment of the market by following our trading criteria for high probability trade setups, exercising sound money management and reward to risk. If we can't find a trade that meets this...we must sit on our hands or go do something else. There will not be trades setting up for us each day...the market doesn't work that way. Be patient and come back each session and follow your rules. The trade setups that meet our criteria will reward us handsomely over time.

The week has only just begun. Let's see what tomorrow brings us.

Michael www.privateforexcoaching.com

A frustrating UK session ends the week. Rules are hugely important in trading! Plan your trades and trade your plan...as they say. Some sessions will result in high probability trades and some won't. Once you know what to look for and take only those trades, your success and consistency goes way up! Don't take trades that don't meet your criteria. If they don't meet your criteria, they are low probability trades or 50-50 at best - save your money and wait for your trade setup to occur. Discipline and patience are extremely important to your trading success!!!

The CHF looked liked it was going to drop last night. I liked the look of it, but I couldn't find an entry.

Let's see what next week brings us.

Enjoy your weekend.

Back on Tuesday.

Michael www.privateforexcoaching.com

The UK session was very quiet as the markets await the FOMC outcome from Dr. Bernanke. The EUR offered a low risk trade with a familiar setup. Neither of our targets is hit, but we can only get what the market offers.

Let's see what tonight brings.

Good luck in your trading.

Michael www.privateforexcoaching.com

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