The JPY had a very active Asian session and began to pull back hard in the UK session.  After it bounced at the previous day's Asian session low (Hint) an entry is found.  The stop loss was 14 pips and the idea was to get to the Asian session high for a retest.  As price moves up, we remove any risk from the trade and protect some profits.  This is critical to your trading success and peace of mind as a trader.  When price bounced off our Target 2, we close the trade to lock in our gains.  Price subsequently tests the Asian session high without us.

The AUD set up nicely 15 minutes after the JPY entry, for a nice short to its Asian session low.   Once the JPY started to move up, a theme of USD strength was apparent and the majors moved accordingly with the exception of the CHF which unusually had a very quiet session.

In trading the 15 minute chart, stops of 15 - 25 pips are my norm at current ranges.  Any trade setup requiring a stop loss of less than 15 pips is very desirable.  When trading ranges expand again, a stop loss of 30 pips is possible, but I haven't had one that large for some time.  When price starts moving in your favour, remember to protect some profit in the event of a sudden reversal.  Never fight the market - you will lose.  Study it!  Go with it - never against it.  If it moves against your analysis, your stop loss is your friend.

Good luck with your trading!

Back tomorrow if we find a trade.

Michael  www.privateforexcoaching.com

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An overall theme of USD weakness was evident throughout today's trading.  The EUR, GBP and CHF took off without us.  With the NZD having a much larger negative Trade Balance than expected, I was curious to see if I could find a reversal trade and ride it to the Asian session high or higher.

The pair eventually set up - consistent with the USD weakness theme that prevailed.  An entry long is taken - allowing for a 17 pip stop loss and a potential 81 pips to our Target 2.  This is a very attractive reward for the risk.  The first level to get through was the Asian session high and alas we couldn't do it.  At the close of UK session, we exit for a modest gain.

It's frustrating seeing some pairs move right to our targets without being able to find an entry, but discipline is key to trading success.  One of my mentors always says, "master your tools, master yourself".

Good luck with your trading!

Back tomorrow if we can find a trade.

Michael  www.privateforexcoaching.com

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A fairly light news session to begin our trading week.  The JPY moved down after an initial surge higher as the UK traders trapped breakout longs and stopped them out.  After a bearish reversal candle, and lower high, a short entry is taken.  The stop loss is 13 pips for a possible 74 pips to our Target 2.  This a great Reward to Risk ratio and stops of 15 pips or less are very attractive to us.

Price moved down but stopped short of the Asian session low and the trade is closed after the wicky candle reversal.  Price pulled back one more time making a third lower high for the session, then dropped once again without us.

Good luck with your trading!

Back tomorrow if we find a trade.

Michael  www.privateforexcoaching.com

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The AUD continues down retracing the post FOMC reaction.

Once again as the UK session gets underway, there are no buyers above the Asian session high.  Price begins to move down and penetrates the Asian session low.  We wait for a retracement and find an entry with a Reward to Risk of greater than 3:1 to our Target 2.  There is no significant US economic news that we need to be concerned about.  Price makes its way down to our Target 1, where it bounces and we close the trade.

Grain farmers in the US years ago are attributed with discovering what is known as the 3 Drives Pattern.  This is a frequently reoccurring pattern where we see 3 waves, either to the high or low on a chart.  The idea for trading it is to catch the second wave which is often the largest of the 3 drives.  It can be visible on all time frames and is fun to recognize and trade.  It is by no means crystal clear and does not always work, but it can be fun to spot.

Whatever your trading style may be... find your edge, keep it simple, manage risk and be consistent.

Good luck with your trading and enjoy your weekend!

Back on Tuesday if we can find a trade.

Michael  www.privateforexcoaching.com

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After the FOMC announcement, the AUD moved up and today it moved back down.  It's good to be aware of the fundamentals, but it's more important to be able to read price, and exercise sound money management.  This involves limiting risk with small stop losses and ideally a Reward to Risk ratio of 2:1 or better - depending on the time of day.

Looking at this particular setup, it was clear that you did not want to be a buyer above the Asian session highs.  There were only sellers above, and after 3 attempts to move higher, price dropped.  With such a large reactive move after the FOMC announcement, I thought the move down would penetrate the pre-FOMC Asian session before stagnating.

It was not long ago that the AUD was worth 1.06 to the USD and even 1.08.  It has a pretty good trading range at the moment, so I will be keeping my eyes on it.

Good luck with your trading!

Back tomorrow if we can find a trade.

Michael  www.privateforexcoaching.com

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The trading in advance of the long awaited September FOMC meeting has had currencies in very tight trading ranges.  The FOMC market buzz is for the tapering of the total monthly purchases of USTs and MBSs to be rduced from $85B down to $75B a month,  and remaining dovish on interest rates.  Traders are also talking about the possibility that the FED may adjust the threshold rate for unemployment lower.

I was not expecting any trades to set up, but the AUD looked attractive.  The idea was to take it short and try to reach the Asian session low.  It was unlikely that the ranges would be anything but muted.  It was a painfully slow boring session and by removing the risk... and more or less waiting to see what would happen, a very small gain is ultimately realized.

The pairs are likely to be active after the FOMC announcement.  Let's look for some opportunities after London re-opens.

Good luck with your trading!

Michael  www.privateforexcoaching.com

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NZD moved up nicely after initially testing the breakout traders' conviction.  As price moved up with news out of the way, the initial stop loss is moved up to plus one.  As price continues to rise, profits are protected by structure.  Price moves through both our targets in one candle.  As price pulls back, the trade is closed at Target 2.

Be aware of FOMC tomorrow during the US session.

Good luck with your trading!

Back tomorrow if we find a trade.

Michael  www.privateforexcoaching.com

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A quiet news session early on... followed by an active US news session.  After the Preliminary U of M Consumer Sentiment figure was released, the NZD reversed and an entry short is taken.  Price penetrated the Asian session highs, but bounced at the session multi-pivot line.  As price indicated there were buyers there, we exit as price climbs to the Asian session high - for a modest gain.

Trading is a very difficult profession to master.  Those that master it, have worked very hard to get there!

Please do not be fooled by internet marketers that sell video courses, robots or get rich quick forex trading schemes.  You will lose your money!   I have numerous students that have spent many thousands of dollars, enormous amounts of time, on so-called highly rated courses that don't work.  I went down a similar path in my first few years of trading.  It wasn't until I was taught by one of the largest traders in the world, that I learned how to focus on what really counts in trading and what to avoid.

Professional and institutional traders know that 90%+ of retail traders will lose their trading accounts in their quest to learn how to trade.  If you learn what the big guys focus on, how they trade - the institutional tricks and awarenesses,  you will be on your way to successful trading.  There are not short cuts, it takes knowledge,  lots of practice and a certain type of personality.  If you are serious about learning how to trade...please contact me.  I will try very hard to make you a profitable trader!

Good luck with your trading!

Enjoy your weekend!

Back Tuesday if we find a trade.

Michael  www.privateforexcoaching.com

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The JPY set up nicely after the US Unemployment figure was released.  The JPY has been making a series of lower highs and double-topped early in the UK session.   It traded in a fairly tight range awaiting the US news.  Once the news was out of the way, it set up nicely allowing us a 2:1 Reward to Risk entry to our Target 2.  Price re-tested the Asian session lows once before dropping to Target 2 where we exit the trade.

There were other nice trade setups too... so I hope everyone had a profitable and productive session.

Good luck with your trading!

Back tomorrow if we find a trade.

Michael  www.privateforexcoaching.com

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The JPY is a pair that I haven't traded in a long time.  It's a major pair and traders will find that it moves well in most sessions.  A European bank trader has been sharing with me a model used for trading the JPY.  It appears to work very well, so I'm back looking for setups in the JPY once again.

After a series of lower highs a short is taken, with a 17 pip stop loss above structure.  Price moves down and bounces off the Asian session low and makes a third lower high for the session.  Price drops almost to our Target 1 and begins to retrace.  After giving up 10 pips on this bounce, we close the trade.

If you're a student of mine and you want to know how many European banks are trading this pair, contact me and I will give you the details.  All our usual rules apply, but there is a trick.

Good luck with your trading!

Back tomorrow if we find a trade.

Michael  www.privateforexcoaching.com

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A very light news session, but we were able to find a trade on the NZD.  The NZD and the AUD both reversed upward at the same time.  The Kiwi set up nicely for us as it bounced off a technical level allowing us to enter long with an affordable stop loss in place beneath the Asian session low.  This met our minimum criterion of a  3:1 Reward to Risk to our Target 2.  Once price rose above yesterday's high, we raised our stop loss thereby removing all risk from the trade.  As price continued slowly to rise, we raised our profit stop to protect ourselves and we are ultimately closed by the market.

Last week was a very slow week for us as we do not trade on NFP Fridays and the trade setups were less than desirable most days.

The trading ranges should pick up this month as the volume increases.

On a side note, my new computer died on the weekend and few things are as frustrating to a trader as a malfunctioning computer or a loss of internet connection.  I will be on my backup until I get the new one back.  Make sure you back up your data regularly, as I will be inconvenienced by thinking I could get away with doing it less frequently due to the fact that I had a new state of the art computer.  Technology failures happen and it is best to have a backup plan for when they do.  Always have the phone number for the trading desk you deal with - in the event that you lose your internet connection.  It is very stressful to be in a trade and unable to see price move.  Always trade with a stop loss!!!

Good luck with your trading!

Back tomorrow if we can find a trade.

Michael  www.privateforexcoaching.com

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A long lackluster session with a very late EUR trade setting up.  The EUR attempted to get above the Asian session high but was unable to stay there.  It finally pushed hard above - well into the US session with all the economic news behind us.  A stop loss under structure enabled us to have a better than 2:1 Reward to Risk ratio... which is our minimum once the US session is underway.

As price moved up we locked in profit and eliminated any risk in the trade.  With very little time left in our trading day, we progressively moved our profit stop higher.  Price missesd our Target 1 by a pip.  We tighten our profit stop allowing a bit of wiggle room, hoping for a final push higher before the UK session ends.  Price came down and we are closed out for modest gains.

Trading ranges have been quite tight recently, but we anticipate they will increase as September moves on.

Good luck with your trading!   Be patient, disciplined, exercise sound money management and keep your stops tight.

Back tomorrow if we find a trade.

Michael  www.privateforexcoaching.com

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