Cowabunga System Daily Update: Tuesday, 03/09/2010

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 :

  • 5:30am EST- UK Total Trade Balance

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 was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.4985 with a stop at the most recent swing high at 1.5025. Since I was 35 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4950.

Entry: Short at 1.4985 Stop: 1.5025 Target: 1.4950

3:00am EST- Unfortunately I was stopped out of my trade.

8:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.4939 with a stop at the most recent swing high at 1.4979. Since I was 39 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4900.

Entry: Short at 1.4939 Stop: 1.4979 Target: 1.4900

9:15am EST- Unfortunately I was stopped out of my trade.

11:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending up and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.4966 with a stop at the most recent swing high at 1.5004. Since I was 16 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4950.

Entry: Short at 1.4966 Stop: 1.5004 Target: 1.4950

11:45am EST- Unfortunately I was stopped out of my trade.

entry2

Trade Result: -40 -40 -38= -118 pips R-Multiple: -1.00; -1.00; -1.00

News events to watch for Wednesday:

  • 4:30am EST- UK Manufacturing Production m/m
  • 10:30am EST- US DOE U.S. Crude Oil Inventories

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.

  • edwingerard

    Hi PipSurfer,

    Just like to check with you on the 1115am EST trade.

    At 11am EST, the EMA 5 and 10 were hovering close to each other but here was no crossover. Subsequently at 1115am EST, there was a crossover at the start of the candle formation. I like to ask if you enter your trade before the candle close at 1115am EST.

    I always thought that we have to wait for the next candle (which is 1130am EST) after the close of the candle before stating our entry.

  • edwingerard

    Hi PipSurfer,

    Just like to check with you on the 1115am EST trade.

    At 11am EST, the EMA 5 and 10 were hovering close to each other but here was no crossover. Subsequently at 1115am EST, there was a crossover at the start of the candle formation. I like to ask if you enter your trade before the candle close at 1115am EST.

    I always thought that we have to wait for the next candle (which is 1130am EST) after the close of the candle before stating our entry.

  • psaucedo

    Hi PipSurfer. I was wondering if you have a pip goal for each week so that you stop trading once you hit it and if so, when you have a bad week, do you try to make up for the previous week plus the current week or do you just go for the same goal week after week regardless of previous week’s losses. Thanks.

  • psaucedo

    Hi PipSurfer. I was wondering if you have a pip goal for each week so that you stop trading once you hit it and if so, when you have a bad week, do you try to make up for the previous week plus the current week or do you just go for the same goal week after week regardless of previous week’s losses. Thanks.