Cowabunga System Daily Update: Thursday, 05/06/2010

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

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

GBPUSD Chart

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 Purchasing Manager Index Services
  • 8:30am EST- US Non-Farm Productivity
  • 9:30am EST- US Fed Chairman Ben Bernanke Speaks in Chicago; Illinois

Today’s Surf

12:00am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.5115 with a stop at the most recent swing high at 1.5145. Since I was only 15 pips away from the nearest 50 or 00 level (1.5100) I decided to go for the same amount of pips I was risking on the trade, which in this case was 30. This put my initial target at 1.5085.

Entry: Short at 1.5115 Stop: 1.5145 Target: 1.5085

2:00am EST- My target was hit. Price made a clean break so I moved my stop to 1.5085 and set my next target for 1.5050.

2:15am EST- My 2nd target was hit. Price didn’t make a clean break this time so I took my final profit. I exited at 1.5055.

8:45am EST- There was a valid signal here but since it was right before the 9:30am EST news I did not enter.

entry2

Trade Result: +60 pips (NOT INCLUDING SPREAD) R-Multiple: 2.00

News events to watch for Friday:

  • 4:30am EST- UK Producer Price Index Output n.s.a.
  • 8:30am EST- US Change in Non-Farm Payrolls

For a complete list of news events check out our Forex Economic Calendar. If you have any questions, check out the Cowabunga FAQs or discuss the Cowabunga System in our Forex Forums.

  • LarryLivingston

    Hey,
    Great work sharing your trades.. Thanks a million.

    Quick question, why do you avoid trading during the news? I’ve been blog for some time and it seems like so many times you stay out and the market goes your way…!?!?

    Sincerely

  • MEHung

    Hey… I assume all pricing is at the bid price (i.e. when you say you exited at your target of 1.5085, that that is the BID… so you’re actually exiting around 1.5089 or so, correct?? Thanks for sharing!….Mike

  • LarryLivingston

    Hey,
    Great work sharing your trades.. Thanks a million.

    Quick question, why do you avoid trading during the news? I’ve been blog for some time and it seems like so many times you stay out and the market goes your way…!?!?

    Sincerely

  • kulvadee

    Hi PipSurfer
    From your experiences, what money mamagement risk% on each trade and how many lots would you recommend for a newbie to start with?
    Thanks.

  • kulvadee

    Hi PipSurfer

    Regarding News annnouncments on Tools tab, what level news impact do you avoid to trade?
    Thanks.

  • MEHung

    Hey… I assume all pricing is at the bid price (i.e. when you say you exited at your target of 1.5085, that that is the BID… so you’re actually exiting around 1.5089 or so, correct?? Thanks for sharing!….Mike

  • kulvadee

    Hi PipSurfer
    From your experiences, what money mamagement risk% on each trade and how many lots would you recommend for a newbie to start with?
    Thanks.

  • kulvadee

    Hi PipSurfer

    Regarding News annnouncments on Tools tab, what level news impact do you avoid to trade?
    Thanks.

  • kulvadee

    Hi PipSurfer
    From the babypips school said best day of the week to trade is Tuesday and Wednesday, bad time to trade is Fridays, Sundays, Holiday, News reports. I knew that you avoid trading when news nearly releases and I wonder if your system apply to those days mentioned in the school?

  • kulvadee

    Hi PipSurfer
    From the babypips school said best day of the week to trade is Tuesday and Wednesday, bad time to trade is Fridays, Sundays, Holiday, News reports. I knew that you avoid trading when news nearly releases and I wonder if your system apply to those days mentioned in the school?

  • Jabba1

    Hi PipSurfer,

    thanks for posting your blog and video’s! They are very helpful.
    I am a newbie and so I have a few real basic questions regarding your video’s. The first is how are you making money on the trades you did today? Are you buying or selling? And then when there is an purple candle and you say its a valid entry and you mentioned the factors on your chart what do those factors you mention mean and what are they representing? I really appreciate your help.

  • Jabba1

    Hi PipSurfer,

    thanks for posting your blog and video’s! They are very helpful.
    I am a newbie and so I have a few real basic questions regarding your video’s. The first is how are you making money on the trades you did today? Are you buying or selling? And then when there is an purple candle and you say its a valid entry and you mentioned the factors on your chart what do those factors you mention mean and what are they representing? I really appreciate your help.