Cowabunga System Daily Update: Friday, 02/26/2010

The CFTC may be changing the rules for retail traders in the US. This affects many of us in a negative way and we need your help getting our voices heard.

Read more of the details

I can not find better words to describe my position on all this than those from Andrei Pehar, Chief Currency Strategist at fxKnight.com.  

Andrei says: "I am not opposed to regulation nor regulatory agencies. But that regulation needs to be fair, transparent, and open to public input. Otherwise it becomes corrupt and self-serving. Sure high leverage can get you into trouble if used thoughtlessly. Sure hedging when not done properly turns one loss into two. But I believe the cure is EDUCATION, not restricting what people can and cannot do with their investment decisions. Guide, don’t dominate – government was invented to protect people and their property, not to limit their potential.

We at BabyPips.com disagree with the CFTC proposal.

If you disagree as well, you may submit your comments to secretary@cftc.gov.  

Include “Regulation of Retail Forex” in the subject line of the message and the identification number RIN 3038-AC61 in the body of the message. Please, help us to spread the word!

I think this is a very important matter that affects us all, and we should try our hardest to ensure that things will be done for the best of the trading community.

If this is your first time visiting this blog, read this first! 

Main Trend

Current Trend

The trend stayed down the entire day.

Today I only looked for short trades.

News events to watch for today :

  • 4:30am EST- UK GDP
  • 8:30am EST- US GDP
  • 9:45am EST- US Chicago PMI
  • 9:55am EST- US U. of Michigan Consumer Confidence
  • 10:00am EST- US Existing Home Sales

Today’s Surf

1:45am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.5263 with a stop at the most recent swing high at 1.5294. Since I was only 13 pips away from the nearest 50 or 00 level (1.5250), I decided to go for the same amount of pips I was risking on the trade, which in this case was 31. This put my initial target at 1.5232.

Entry: Short at 1.5263 Stop: 1.5294 Target: 1.5232

4:00am EST- Unfortunately I was stopped out of my trade.

4:45am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.5254 with a stop at the most recent swing high at 1.5319. Since I was only 4 pips away from the nearest 50 or 00 level (1.5250), I decided to go for the same amount of pips I was risking on the trade, which in this case was 65. This put my initial target at 1.5189.

Entry: Short at 1.5254 Stop: 1.5319 Target: 1.5189

8:00am EST- My target was hit. Since price didn’t make a clean break I took my final profit. I exited right at 1.5189.

entry2

Trade Result: -31 +65= +34 pips (NOT INCLUDING SPREAD) R-Multiple:-1.00; 1.00

News events to watch for Monday:

  • 4:30am EST- UK Manufacturing PMI
  • 8:30am EST- US Core PCE Price Index m/m
  • 10:00am EST- US ISM Manufacturing PMI

For a complete list of news events check out our Forex Economic Calendar.
Questions? Read the Cowabunga FAQ.

Want to discuss the Cowabunga System? Visit our Forex Forums.

  • kbatts

    Would it be possible sometime to do a live trade and show the system in action. Video when the trade is entered then video when the trade is completed.
    Thanks

  • PipSurfer

    @kbatts- I’ve thought about this before and it would be a great idea. However, there are 2 reasons why I haven’t done so yet. The first is that it would take too much of my time. While I love helping people out, I also have a life outside of trading and responsibilities to my family. What’s nice about the routine now is that I can trade and still do other things throughout the day. Monitoring a chat room would prevent me from being able to do the other tasks that I need to accomplish. The 2nd reason is that I feel like a chatroom would cause people to just take handouts rather than get them to learn and develop their own trading skills. Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.

    With that said, I think maybe doing a one time thing or even an intermittent chatroom may be something I can work out. I appreciate your feedback and will keep everyone posted if this is something I will be able to do in the future.

    Have a great weekend and happy trading!

  • gabriel888

    Hi Pip Surfer,

    Will appreciate if u can do e Daily Update on Mon. n’ Fri. as well if your time allows..
    I really learn a great deal from u..
    Thanks once again..

    Cheers,
    Gabriel.

  • kbatts

    Would it be possible sometime to do a live trade and show the system in action. Video when the trade is entered then video when the trade is completed.
    Thanks

  • PipSurfer

    @kbatts- I’ve thought about this before and it would be a great idea. However, there are 2 reasons why I haven’t done so yet. The first is that it would take too much of my time. While I love helping people out, I also have a life outside of trading and responsibilities to my family. What’s nice about the routine now is that I can trade and still do other things throughout the day. Monitoring a chat room would prevent me from being able to do the other tasks that I need to accomplish. The 2nd reason is that I feel like a chatroom would cause people to just take handouts rather than get them to learn and develop their own trading skills. Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.

    With that said, I think maybe doing a one time thing or even an intermittent chatroom may be something I can work out. I appreciate your feedback and will keep everyone posted if this is something I will be able to do in the future.

    Have a great weekend and happy trading!

  • gabriel888

    Hi Pip Surfer,

    Will appreciate if u can do e Daily Update on Mon. n’ Fri. as well if your time allows..
    I really learn a great deal from u..
    Thanks once again..

    Cheers,
    Gabriel.