In this video:
00:21 A really good week of trading
00:40 One trade open on the Euro/US Dollar
01:36 Getting big movement and a lot of volatility
01:47 Silver trades looking strong on the longer term charts
02:07 Fundamental basics of trading
02:35 Picking-up high probability trades
03:25 Nice engulfing candle formation
Hi everybody, Andrew Mitchem here the Forex Trading Coach.
Today is Friday, the 5th of October.
I’m back home after a week away. I had a fantastic week away and back in the office again this week.
Well, I had a really good week with my trades this week. I’m up +1.5% and thats with risking only a quarter of 1%. So, 0.25% risk per trade. A 1.5% gain for the week so far.
I’m not expecting probably many more trades for the day. I do have one trade open on the Euro/US Dollar. I’m long on that at the moment, but we have the US non-farm payroll.
The monthly unemployment data coming out later tonight my time, Friday morning New York time.
Judging by what I can see on the charts, at the moment obviously the Euro has been in a lot of strength. And at this stage, I see no reason for that not to continue. The US dollar is looking weak and so my feeling at this stage would be that the non-farm payroll data is more than likely going to come in at expected or probably below expectation.
That would be my feeling right now from looking at the charts.
If I have any shorter timeframe chart trades open at before the news, I will be closing those. My daily trade: I'll probably be keeping them open but monitoring them just before that announcement.
It’s pretty much the only major news announcement that I'm wary of because you can get such big movement and a lot of volatility.
With the rest of my trades, my silver is still open and it’s just over the $35 at this stage. And I see no reason for that not to continue. It’s looking really strong on the longer term charts, but a long way still to go on that.
With my clients, we’ve had a really good webinar. Last night we had a 2 hour live trading room webinar. Well just over 2 hours. We took some really good trades in there.
I also concentrated on going back to basics and it’s really important for us as traders to remember the fundamental basics of trading. It helps to keep our mindset straight. It helps us with our emotions and that helps us to select the good trades and to eliminate those sorts of 50-50 trades that we really don’t need to be taking especially in this current environment.
It is a really difficult trading environment right now so we need to be really selective and get back to basics and pick out the high probability trades.
Looking ahead into next week!
On Monday, there is Japanese, a US, and a Canadian Holiday. All on Monday so, I’m not anticipating a lot of price action on Monday. Probably going to be a very quiet day!
And then, later of the week on Thursday, there’s Australian news out. Looking at the Australian dollar threat the whole of this week, it’s just crashed. The Aus/US Dollar has jus fallen away and that’s really come about as a result of the cash rate dropping. That drop a quarter of 1% on Tuesday.
They’ve had trade balance figures that have been really bad and next week we’ve got employment data. So looking at the chart I'd anticipate that the Australian Dollar is more than likely going to continue to fall at this stage.
This time last week, last Friday we did have a nice engulfing candle formation on the daily chart which was suggesting the Australian Dollar was looking like it was going to fall and we did see that fall out through into this week.
Looking at right now, we could see that Australian Dollar continue to fall into next week.
So that’s all for now!
Hope you’ve enjoyed the session and I look forward to talking to you this time next week.