FAQ Copied from members questions & comments on the blog We have had loads of questions repeated on the blog. It was not easy to find a lot of them as they were posted on different pages. For this reason I have created the forum. Here below I have copied & pasted some of the more regular questions & answers:

THE most asked question: Posted july Question from Vero: Hi Gally, I was reading what you wrote about the signals today, I didn’t get so many signals and most of them were in an opposing direction to the Daily trends. Lately lmt hasn’t given me any good results any clue?

Answer from Alx: for a week or so Marc and me post here or twitter to stay away from LMT trading. This is a TRENDING system. Markets ARE NOT trending. They are in SIDEWAYS and CHOPPY action. They will remain like this till the end of August.
Once they find new trends, the LMT will get back to its marvelous 80+% winning ratio. Stay away and you’ll be safe. ALX

Question from jimmy: Hi Marc, I bought the LMT a few months back. I always feel uncomfortable when using as its stop loss is at least 2 times that of recommended profit taking which contradict what i learned in the past.Please advise.


Answer from marc: Hi jimmy. the 1st target is simply that, the FIRST stage of the trade. At that point you either move your stop to entry and let the trade run for the bigger target or do as i do. I take 2 lots. Close the 1st at 1st target and lock in some profits. Then I move the stop to entry on the 2nd lot and let that run,

Question from Dean july 2009 Hi Marc,Do you factor in support/resistance levels when entering a LMT trade? For example: how many touches on the S/R line do you like to see to classify as notable S/R, does it matter if they are as support or resistance if looking at a long entry? Finally, how much (if any) of a buffer do you require between your 1st profit target and the S/R line?


Answer from Marc
Hi Dean, good question. at the moment the markets are not trending therefore the lmt will struggle to find good long term trades. before this summer quiet period started, we were generally just taking the trades and they were winning. at the moment support and resistance lines are very important. price is bouncing between the 2 on lots of pairs. 2 or more touches on a 4 hour chart is enough for me.
If price is within 20/30 pips of the support or resistance area then it doesn’t leave us a great % chance of winning. We also need to consider daily ranges as explained in the advanced rules.
last night at 6pm london time there were a load of signals, but lots of the pairs were at or near support and resistance areas & their daily range; i posted this on twitter: “lots of lmt forex signals in 2 minutes make sure to check candle size and daily ranges, lots are near limit now.”
I went to the 15 minute charts to see if there was a pullback (there was on all of them). I left it alone, but the only way to trade it was off a pullback.
I keep telling people that the pro traders, who are using a trend following system such as this will simply walk away at the moment until the market changes.
if you MUST trade then be careful and conservative. when the trend returns (main trending times are september to xmas & january to late may) we will make a lot of money with the lmt. marc

Answer to same question posted by Gally
Alex is away, but my understanding is he trades one contract just to first level and another which he lets run and moves the stop up (as in Dean’s/Marc’s instructions). Hence my reference to ’second target’ above. Alex is also very aware of timings–he’s taught me a lot over the last couple of weeks about the likely changes at different times of the day. Reversals at London opening for instance.
I tend to check first thing (5-30 BST) which pairs are daily/H4 the same, what the ADX is (measures momentum) and plan which trades I’m going to take. I do look at S&R, but they’re not as important to me as they are to Marc (I do watch the EMAs though–20 and 200 particularly). I had a good day yesterday because I decided in my planning not to trade any JPY trades, after reversals the night before. So I had only winners. If I’d have traded JPY yesterday it would probably have been about 50/50 winners/losers.
Finally, its a terrible time to start trading. August is for lying on the beach. If its going wrong, take a month to look at historic charts, don’t put any money down and come back in September.
Just my two pennorth…YMMV/DYOR