Michael Bridgman

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.

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.

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.

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.

After a great day for all the majors yesterday, their trading was a bit more subdued today.  The EUR was particularly reactive to news and with 2 back-to-back candles of over 60 pips each, I looked elsewhere for a trade setup.  The stop loss placement and target areas don’t qualify for the reward to risk ratio criterion under such circumstances.

The CAD has not had a great trading range lately and it tends to move more when the North American traders are active.  Overnight it offered up a very low risk trading opportunity after a very nice pullback.

Holidays are over and the currencies are active once again.  Be very cautious around news releases always.

Good luck in your trading!

Back tomorrow.

Volumes are back and patterns are clearer.  The EUR moved up nicely overnight and all the majors looked very attractive for trading.  Wait for your entry and ensure that it meets a 3:1 minimum reward to risk ratio.  Move the risk out of the trade as it progresses by moving your stop loss in the direction of the trade… so that it is locking in your profits as the trade progresses toward the target areas.  ALWAYS trade with a stop loss and ALWAYS protect your profits.

We’re off to a good start this week.

See you tomorrow.