This is a video summary of the Live Forex Trading Room session on November 6, 2007.

Today’s Summary, by Sunil Mangwani:

There was one intraday trade taken today which went off very well. I would like to concentrate on this trade today and the process which gave us the necessary confirmations to enter the market correctly.

It was a Yen pair on which we traded, but thats not how the trade started out. Lets have a look at the sort of correlations we were looking for.

We started off analyzing the EUR/USD. This pair has been in a bullish intraday phase, and we plotted some 1-2-3 Formations and applied our Fibonacci Expansions. Based on the Expansions, we knew that a certain level has yet to be satisfied. We were thus bullish on the EUR/USD, expecting it to go up. (more…)

This is a video summary of the Live Forex Trading Room session on October 30, 2007.

Today’s Summary, by Sunil Mangwani:

There were a couple of intraday trades today, which we will go over before following up on the long term trades which we are into up to now.

On the GBP/CHF  we identified a Bearish Divergence, which contributed to a Short trade, as pointed out by one of our members. The price made higher highs, stochastics made lower highs, and the lower high on the stochastic was quite below the overbought level of 80. This means the momentum has been decreasing in this rally of price which gave us the second high. This signifies a change of trend. This was a nice divergence, and we went in according to our divergence trading rules.

We plotted our Fibonacci Fans, and also used other fib projections to get our targets for a technically correct and profitable trade. (more…)

Many scoff at the idea of “Forex for a Living”.

The disbelief in this idea is further encouraged by tales of trauma received by many an unfortunate trader. We have all heard the horror stories, the tragic accounts of so-called “newbies”, and are tempted to dismiss the idea of trading for a living right off.

On the other hand, we have success stories.

Traders come forward to say - “Yes, it’s very possible! Look at me, I live off my trading.” Some people who read or hear such talk say, “I think he’s a dirty liar!”. They think, “If he has money, its because he was rich before – it wasn’t trading that made him so!”, or “I don’t know how much he lost before he made a profit.”

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This is a video summary of the Live Forex Trading Room session on October 10, 2007.

Today’s Summary, by Sunil Mangwani:

Not much of a day today, but lets go over a couple of things that we’ve been following since yesterday.

The EUR/JPY, since yesterday’s recap and close of the session, we mentioned a 1-2-3 Formation on which we went Long. We have a set of rules and a system for trading the 1-2-3 Formation. It is a classical pullback formation - a continuation pattern in the beginning of a new trend. We use a combination of Fibonacci Expansions and Fans for our confirmation.

We went into our Long trade at the break of a certain level which is a standard entry point we use in our room. We closed off the trade at the 161% Fibonacci Expansion level, which also coincides with a fan level. This was an excellent trade of about 120 points, and the sort of setups we really enjoy looking at, as they are generally stress free and confident. Having faith in your systems is very important.

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This is a video summary of the Live Forex Trading Room session on October 8, 2007.

Today’s Summary, by Sunil Mangwani:

Besides the trades that we execute, these recaps are becoming more and more important for the procedures which we use to analyze the trade, and the different tools we have in our toolbox to correctly assess the situation and make a good trade. Lets go over the different procedures we follow which hopefully culminate in a profit.

On the GBP/JPY, 1h charts, what we were looking for is a Hidden Bullish Divergence - waiting for price to come and find support at a Fibonacci Fan level. When it did so, we went Long on this pair, and managed to capture some profit on the upmove. This was a decent trade, but he point is that we identify a situation and use our tools to let price give us a confirmation.

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