Free Forex Advice for NFP Friday 5th March 2010

Hi, my best advice for NFP Friday is: DON’T DO IT!  I have explained many times before why I do not trade today. This is forex at its most illogical, silliest most volatile period. You can win or more likely lose in a heart beat. rather than me repeating myself, here’s a video I did in December showing you why I do not recommend trading NFP news, especially if you are new. I do show you a method that one of the “gurus” shows you on fxstreet, but to save you the 2 hours of tedium it takes only 2 minutes for me to explain in the following video: NFP Friday & Why I do NOT trade it

Guest presenter David from New York explains a few things in the video at the bottom of the page, that he may take a few trades AFTER the news has been released and certainly potential trades for Monday.

Forexmentorpro

We had a tricky start to the week this week but it all came good on Wednesday when 5 out of 6 of my “tips” came good for 100′s of pips. This is a copy of my summary that was posted on the blog of the mentor service that I run;

“I have had a lot of emails today asking me how did I “know” that the Euro was going to bounce back up & the Chf down. I have no more of a crystal ball than anyone else, but this is why I tell you to specialise in a few pairs as I honestly believe that you can develop a “feel” for markets. Do I get it right all the time? Of course not, but those of you who have been with me for a while know that I am correct more times than not For a refresher take a look at last nights video again.

One of the members, Barry, kindly sent me a review of one of the best forex books that I have ever read, called “Trading in the Zone”, by Mark Douglas. I will post this on Friday. I haven’t read the book for ages but one of the important points the author makes is;

“To be in the Zone: Your mind and the market are in sync. You sense what the market is about to do as if there is no separation between yourself and the collective consciousness of everyone else in the market”.

Can you learn to do this? Of course you can, BUT its a damn sight easier starting with two or three pairs rather than ten!

What was apparant today was that you need to take small first profits & stops to entry as soon as possible in the current markets. The nearer we get to the dreaded NFP Friday the more likely the movements will dry up (excluding news of course) .

5 out of 6 Aint bad

1. Euro/$ I said that I felt that the recent major resistance level of 1.3650 would not hold this time & I explained my reasons why. I suggested that price could bounce back down at 1.3740. I took just 15 pips off the 1st part and I have moved my stop on the second part to entry + 15 pips. This is risk free and gives this a little bit of room to breathe.
2. I said that the Chf could break 1.0700 which has held for last week or more and possibly come as far down as 1.0660 & bounce up. It did.
3. Been saying for over a week that the Aud should be going up. Said last night to look for a pullback to 0.9010. It did. gave 60+ pips on 1st move. I am still in with 2nd. left stop at entry. This could go a lot further.
4. Was looking for pullback to 0.8900 on $/Yen. Said the daily bollinger suggested further fall. It teased by closing 2 pips above where I wanted last night but it did pullback and is currently up 50 pips. I am still in from the short from 90.00 so its been a good week for me on this pair, which is not my favourite.
5. Euro/Gbp Said to look for pullbacks to 0.9050. It did. I have been in and out of this three times today. Each time only for average of 20 pips, but hey its a win!
6. Said to look for pullback to 1.5050 on the Gbp/$ WRONG. Price went straight through. This was just general $ weakness today, NOT  a Gbp move.
7. Said to look for a pullback on the Cad to 1.0375. I had an order in at 1.0365. It missed by 4 pips and fell 80. doh!

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