In this video:
00:53 US Dollar strengthened against other currencies
01:06 New Zealand Dollar bounced off 0.83 levels against the US
01:51 Strength in the Japanese Yen
01:57 Short on the New Zealand Dollar Yen/ Euro Yen
02:02 Buy trade on the British Pound/Canadian Dollar and US/Canadian Dollar
02:21 Really good profitable week
02:46 Risky to take a longer term trade
03:02 Knowing how the market reacts to the US election result
Hi everybody Andrew Mitchem here, the Forex Trading Coach.
Today is Friday, the 9th of November.
I’m in the new property and we’ve done the box shifting and moved home, so here we are. We've got everything set up all the computer screens set up.
Today is a lovely day. I've got the pool behind me here that’s where I’m going as soon as I finish this video!
Well, we’ve had the US elections this week and obviously Obama got back in. To start with that weakened the US dollar. It then turned around and strengthen against most of the other currencies towards the later part of the week.
I wanted to mention about the New Zealand Dollar. The New Zealand Dollar bounced off the eighty three level against the US – 0.8300. There was a classic reversal signal that I teach to my clients. And it was interesting that the New Zealand Dollar started dropping, but several hours later there was some really bad unemployment data that came out.
The New Zealand unemployment rate went up to one of the highest levels in quite a number of years.
But what I wanted to show you is that that information, that news event, that fundamental event was already factored in into the price and using the technical analysis that I teach to my client every day – That information was already faceted in – And I could see that the New Zealand Dollar was going to drop off the 0.8300 level several hours prior to that bad news announcement as being released.
Japanese Yen Strengthens
Elsewhere we’ve had a lot of strength in the Japanese Yen this week and I’m actually short on the couple of currencies. I’m short on the New Zealand Dollar/Yen and I’m short on the Euro/Yen.
Elsewhere I’ve got a buy trade so going on the British Pound/Canadian Dollar and also the US/Canadian Dollar.
Also interesting this week, right now I’m up about half a percent for the week.
But the point I also wanted to make here was for three out of the five days of this week, I’ve had no suggestions on my daily trade suggestions but I still had a really good profitable week and still have four trades in right now.
You don’t have to trade all the time!
So what I wanted to actually let you know is that you don’t have to trade all the time to make money. Now obviously I’ve taken some shorter timeframe trades there as well. But on the longer daily timeframe, due to the US election, I couldn’t see anything on the Tuesday and Wednesday.
And with the news announcements there off that election, to me it was actually quite risky to take a longer term trade.
It was fine on the shorter term trade where I could be in and out of the trade within a number of minutes or hours.
But where I’m looking at holding the trade open for – maybe a day or two, it was quite risky not knowing the result of the US election and not knowing how the market may react to that news.
Five trades on the daily chart
And today again I’ve taken no trades: Today being Friday.
Yesterday I took five trades on the daily chart.
So regardless of what you think, it is important to realize you don’t need to be trading all the time to make money.
If you trade too much, you either:
1. Going to be looking at the charts far too often and
2. You can be paying your broker far too much money!
So that’s all for today!
I’m off for a swim behind here right now.
The sun is just about to come back out from behind that cloud and I look forward to talking to you this time next week.