Today's Trade: Thursday 05 September

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Today sees a huge amount of news in the calendar, including rate announcements from the European Central Bank and the Bank of England. ADP figures are also due from the US. Today I will be on the sidelines until all of those releases are out of the way.
 
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Damo

Private
Messages
12
Hi Jarrett
Does this mean you don't trade the actual news reports at time of print ,rather the result and information resulting from the economics.
Also another questiopn ,if that's OK , do you use any other trade entry signal times other than 5 min.Like 240 min. PA etc.
Thanks
Damo
 

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Hi Jarrett
Does this mean you don't trade the actual news reports at time of print ,rather the result and information resulting from the economics.
Also another questiopn ,if that's OK , do you use any other trade entry signal times other than 5 min.Like 240 min. PA etc.
Thanks
Damo


Hi Damo,

Thanks for your post :)

That is exactly right ... There is no need to rush into a position as soon as the news is released, because very often the effects of good news can be traded hours or even days after it has been released. The trick is learning when and how to take advantage of those opportunities.

Longer term trades very often do not require a chart at all, because they tend to be completely fundamentally based, so a great example is the currency USD/JPY trade.

All of the fundamentals point to that pair rallying over the next 12 months. However short term sentiment has pulled it down temporarily.

As a long term trader I would be looking to enter once or twice in between 100 and 95.00 ... and again if it dropped to the 90.00 - 95.00 zone, and hold until it came back.

Ofcourse as long term position it may take a few weeks or months to pay off, and you would obviously only trade a tiny size but ultimately as long as those fundamentals do not change you should be good.

As you can see in those cases there is no need to get too technical and you can just use round figure prices to guide your entries etc...

My personal problem (And I do have problems just like everyone!) is that when I see 50 - 100 pips on the table I just have to bank them! .... My original plan was to hold UJ from 90.00 all the way to 110.00 .... Which as it stands would still be a decent trade, but I just couldn't help myself banking the pips as they came. So instead I have simply taken lots of smaller profits along the way.

It really depends on your nature as a trader and which style you can stick to best.

to summarize the answer to your question, I use 5 and 15 minute time-frames for day trading (As they give great entries once i have the fundamental direction), but the higher you go and the more longer term you get the less technicals really play a part.

I hope that helps, and if you have any other questions, please feel free to let me know!

Thanks

J
 
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Kovacs Norbert

Private
Messages
26
Hello all,

if today's NFP data fails to delivery, and live up to the hyped up expectation of good number, USD is dead for the year, and USDJPY would collapse like burning house. If NFP deliveres, obvioulsy would rally. BUT, since the retail market is long,the aftenoon event has a negative risk.

Now, the recent USDJPY rally can NOT be named long term trend. Rather, a impulsive correction of monthly decline of 124.10-74.20.

Follow chart, nothing else, that is all you need to find good trading opportunities.

Best regards,
KN


--------------------------
Longer term trades very often do not require a chart at all, because they tend to be completely fundamentally based, so a great example is the currency USD/JPY trade.

All of the fundamentals point to that pair rallying over the next 12 months. However short term sentiment has pulled it down temporarily.

As a long term trader I would be looking to enter once or twice in between 100 and 95.00 ... and again if it dropped to the 90.00 - 95.00 zone, and hold until it came back.

Ofcourse as long term position it may take a few weeks or months to pay off, and you would obviously only trade a tiny size but ultimately as long as those fundamentals do not change you should be good.

As you can see in those cases there is no need to get too technical and you can just use round figure prices to guide your entries etc...

My personal problem (And I do have problems just like everyone!) is that when I see 50 - 100 pips on the table I just have to bank them! .... My original plan was to hold UJ from 90.00 all the way to 110.00 .... Which as it stands would still be a decent trade, but I just couldn't help myself banking the pips as they came. So instead I have simply taken lots of smaller profits along the way.
 
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