Best Forex Friend (BFF) of the Week:
For my Best Forex Friend (BFF) this week, I give my happy snaps to one of the most active members on my Happy Comdoll Corners! Let’s all give a hand to…
Like his British namesake, ST has been very generous about his trade ideas and opinions in the Happy Comdoll Corners forums. He even suggested that I take partial profits at .9820 on my USD/CAD trade! But more on that later.
ST is a 37-year old trader who has been in the biz for almost two years. Oh, and have I told you that this self-confessed family man also trades from his home? He says he quit the job he’s been doing for ten years, and then decided to trade full time after being profitable on his first six months. Heck, he even looks at the picture of his wife and three small kids when he trades on his kitchen table facing a farm! What a lucky guy!
As for his trading, he says he prefers trend-based trades, especially if it’s supported by price action, support and resistance areas, and Fibonacci retracement levels. He also uses EMAs, but only to validate his s&r levels. What’s more, he doesn’t trade ahead of major news reports!
His tips for forex newbies? Don’t overcomplicate. No matter how tempting it is, don’t clutter up the screen with too much indicators and lines. Don’t take every setup, just cherry pick the really clean, obvious ones. Also, remember that with compounding, even 5%-10% a month can give a good income. Very well said, ST!
So you think you’ve learned something from ST? Then my BFF project is working! If you want to be my next Best Forex Friend, don’t worry! All you have to do is share your thoughts, ideas, opinions, and or even just a holler at one of the following:
1. My Happy Comdoll Corners:
2. My @Happy_pip Twitter account
3. My Playing with Comdolls Facebook page
Again, the goal of the project is for other traders (experts and newbies alike) to be able to freely share trade ideas, especially on comdoll pairs. After all, isn’t it better to have a friend while trading?
Till my next post,
Best Setup of the Week:
For my best setup this week, I turned my attention to one of the most closely watched pair last week – USD/CAD.
As my forum friends and I have been talking about in one of my Happy Corners, the pair encountered support at the .9710 area, which is also the support for a rising channel on the 4-hour chart. Heck, I even had a USD/CAD trade myself!
Now imagine our pleasant surprise when it shot up last Thursday! The pair lollygagged around the 38.2% Fib level before it rocketed all the way to .9900 early today.
If we had entered at .9710, placed a tight 20-pip stop, added another position at the 38.2% Fib when there was also a bullish divergence and an oversold Stochastic signal, and then closed all positions at .9900, we could’ve gotten a very, very sweet 210 pips with an even sweeter 10.5 reward-to-risk trade! I could’ve been done for the month with that risk ratio!
I have to admit my entry and exit points on my USD/CAD trade this week aren’t as perfect as my best setup, by hey, at least we’re getting close! That’s the purpose of this exercise anyway, isn’t it?
Now on to more good news!
Since starting my Best Forex Friend (BFF) of the week stint three weeks ago, I’ve met dozens of cool people from my Happy Corners in the Forums, my @Happy_pip Twitter account, and even Playing with Comdolls Facebook page. These are the people who aren’t shy to voice out their trade ideas, or even just their opinions on my trades and comdoll replays.
And to show my appreciation of just how smart and funny they are, I’m gonna try to feature my BFFs on a different day! It will still be on my weekly replay post though, but maybe not at the same time as my best setup of the week?
What do you guys think? Looking forward to hearing from you,
What moved the comdolls last week?
At first, the Aussie, Kiwi, and Loonie were off to a strong start as they took advantage of U.S. dollar weakness. Apparently, the U.S. got slapped with a warning from Fitch, who threatened to put the country on negative watch unless they raise their debt ceiling. You see, the U.S. already reached their debt limit last month but their lawmakers just couldn’t seem to agree on how to deal with this problem.
Of course, as we learned in the fundamental analysis lesson in the School of Pipsology, problems like these are usually bearish for the country’s currency. Because of that, the U.S. dollar sold off like lemonade on a hot summer’s day!
However, the anti-Greenback bias quickly reversed in the next few days when risk aversion started to loom like a dark cloud over the markets. If my memory serves me right, the shift in market sentiment occurred just after the FOMC issued a relatively downbeat statement. Towards the middle of the week, the comdoll gang were forced to return their recent gains as traders flocked back to the safe-havens.
It didn’t help that the commodity-related economies printed weak numbers then. For instance, Canada‘s retail sales report came in weaker than expected as it showed a mere 0.3% uptick, half the projected 0.6% rise. Even worse, falling gold and oil prices also dragged the comdolls down. Could it be because of the OTC gold and silver trading ban that Forex Ninja wrote about recently?
Anyway, the good thing is that the absence of risk-taking during the last couple of days of the week worked out for my long USD/CAD trade. Tee hee!
If this gloomy risk sentiment carries on for yet another week, I might just take the AUD/USD setup that’s getting a lot of buzz in my Happy Comdoll Corner for Aussie pairs! A couple of my forum friends are already keeping close tabs on this short Aussie opportunity and I think we all should, too. Go on, check it out!
But if trading the Aussie ain’t your cup of tea, you might rather talk about setups on the Loonie and Kiwi then. Feel free to post your ideas on these threads:
Happy Corner: Loonie (CAD) pairs
Happy Corner: Kiwi (NZD) pairs
And don’t forget to watch out for my best trade setup of the week as well as my latest BFF!