pipmaestro in the house

• admin
• September 27th, 2009

I’m really delighted to participate in the new StockTwitsFX blog. I remember joining StockTwits around the time that the FOREX symbols were added to the platform and have been amazed at how the community has grown. I’ve received 10 times more from the community than anything that I’ve contributed. So with great pleasure, let’s begin. 

Short term day trading is my bread and butter. I will also occasionally take long term positions in the $EURUSD and the commodity currencies ($AUDUSD, $NZDUSD and $USDCAD) but from a psychological point of view I enjoy the immediate feedback provided by holding shorter term positions. 

Items in my trading tool chest:  

I prefer to specialize in one or two currency pairs because I believe an edge is attained by the extra screen time focus. You can detect additional levels of intraday support / resistance not easily apparent with a chart.    

Volatility is my friend not my enemy thus making the $GBPJPY my current favorite pair to trade. With volatility and discipline, the old adage of your winners being much greater than your losers is attainable; that old adage is extremely important by the way. 

I don’t trade the news but rather the short term trend directly resulting from the news. FOREX news is like a good friend who keeps on giving; just be prepared for the punch bowl to be taken away at a moments notice.     

I trade strong short term trends when the market provides the opportunity regardless of time of day (we saw that last Friday with $GBPJPY). 

I don’t predict where a market is going but rather react to its current path of least resistance; just join them no need to beat them. 

I believe “fewer is better” when it comes to the number of trading variables one uses to make a trading decision. 

Some of my assertions here may be conventional wisdom and some may not. They are all part of my trading tool chest, my trading belief system. In future posts, I will be pointing out how one or more of these beliefs contributed to an actual trading decision / outcome. 

Is the news really news?

Have you ever wondered whether or not positive news out of a country  consistently translates into a positive movement for the associated currency in the short term (and vice versa)? How often does the pound, yen or dollar’s immediate short term movement correlate with scheduled news events? Assuming a positive correlation occurs, what’s the duration? The whole “build up to scheduled news / scheduled news hits / aftermath” cycle inherent in FOREX has always reminded me of a three ring circus. It’s time to unmask the clown. Perhaps we’ll learn a few things that the financial industrial complex does not want you to know; or maybe we’ll just become better traders. 

Would love to hear your comments and suggestions and don’t forget to follow me (pipmaestro) and all the other contributors here on StockTwitsFX blog.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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