Cowabunga System Daily Update: Wednesday, 03/24/2010

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 :

  • 8:30am EST- US Durable Goods Orders
  • 10:00am EST- US New Home Sales

Today’s Surf

5:00am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.4965 with a stop at the most recent swing high at 1.5018. Since I was 15 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.4950.

Entry: Short at 1.4965 Stop: 1.5018 Target: 1.4950

6:30am EST- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.4952.

entry2

Trade Result: +13 pips (NOT INCLUDING SPREAD) R-Multiple: 0.24

News events to watch for Friday:

  • 5:30am EST- UK Retail Sales Ex Gas
  • 8:30am EST- US Initial Jobless Claims

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.

  • Andyshaw

    Hi PS

    Could you clarify the take profit for me please. I gathered from previous posts that anything below 20 and you would go to the next 50 level. Today, you were around 15 pips from the nearest level. I set my TP at 14900 rather than 14950. It worked to my advantage today. Is there set guidance on when to set to the next 50 level, i.e. more than 10 pips or more than 20 pips.

  • Andyshaw

    Sorry PS I meant targeting the same amount as risking rather than the next 50 level. i.e. there are some examples where you are 15 pips away from the nearest 50 level and you set target at the next 50 level but others where you are say 16 pips away but set the take profit at say 40 (the same amount as risked with the stop). Is there a hard and fast rule.

  • Andyshaw

    Hi PS

    Could you clarify the take profit for me please. I gathered from previous posts that anything below 20 and you would go to the next 50 level. Today, you were around 15 pips from the nearest level. I set my TP at 14900 rather than 14950. It worked to my advantage today. Is there set guidance on when to set to the next 50 level, i.e. more than 10 pips or more than 20 pips.

  • Andyshaw

    Sorry PS I meant targeting the same amount as risking rather than the next 50 level. i.e. there are some examples where you are 15 pips away from the nearest 50 level and you set target at the next 50 level but others where you are say 16 pips away but set the take profit at say 40 (the same amount as risked with the stop). Is there a hard and fast rule.

  • PipSurfer

    If you have a target that is at least 10 pips after the spread than it is still ok to go for the nearest 50 or 00 level. Otherwise, you would want to go for the same amount of pips you are risking on the trade. Hope that helps! Happy Trading!

  • PipSurfer

    If you have a target that is at least 10 pips after the spread than it is still ok to go for the nearest 50 or 00 level. Otherwise, you would want to go for the same amount of pips you are risking on the trade. Hope that helps! Happy Trading!