Cowabunga System Daily Update: Tuesday, 05/11/2010

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 240 min 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 Manufacturing Production
  • 10:00am EST- US Wholesale Inventories

Today’s Surf

1:45am 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 1.4811 with a stop at the most recent swing high at 1.4845. Since I was only 11 pips away from the nearest 50 or 00 level (1.4800) I decided to go for the same amount of pips I was risking on the trade, which in this case was 34. This put my initial target at 1.4777.

Entry: Short at 1.4811 Stop: 1.4845 Target: 1.4777

2:00am EST- My target was hit. Price made a clean break so I moved my stop to 1.4777 and set my next target for 1.4750.

2:15am EST- Unfortunately I got stopped out at 1.4777.

5:45am 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 1.4798 with a stop at the most recent swing high at 1.4886. Since I was 48 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.4750.

Entry: Short at 1.4798 Stop: 1.4886 Target: 1.4750

6:30am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.4755.

GBPUSD 15 min chart

Trade Result: +34 +43= +77 pips (NOT INCLUDING SPREAD) R-Multiple: 1.00; 0.48

News events to watch for Wednesday:

  • 4:30am EST- UK Jobless Claims Change
  • 5:30am EST- UK BOE Inflation Report
  • 8:30am EST- US Trade Balance

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.

  • MEHung

    Have you not had success trading before midnight?… or do you not trade then because of your schedule? I’ve been watching 6pm-midnight, and it appears there are opportunities there as well. Just wondering if you’re avoiding that time frame because you’ve had too many losses when trying to trade it. Thanks. Mike

  • MEHung

    Have you not had success trading before midnight?… or do you not trade then because of your schedule? I’ve been watching 6pm-midnight, and it appears there are opportunities there as well. Just wondering if you’re avoiding that time frame because you’ve had too many losses when trying to trade it. Thanks. Mike

  • PipSurfer

    I don’t trade before midnight because volume is usually lower around that time. I’m sure you will find some success in that time period but over the long run, it looks like its not worth the risk.

  • PipSurfer

    I don’t trade before midnight because volume is usually lower around that time. I’m sure you will find some success in that time period but over the long run, it looks like its not worth the risk.