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1: First of all you should know that the future is by god's will and the door is always opened for some luck strikes can help you or tackle you from time to time.

2: The money in your account is always floating and it is on your anticipation and you always exposed on your experiences.

3: The market fundamentals such as the data or the comments can change the current market sentiment and by the way changing the best to buy and the best to sell and this can be against you or by your side. You should evaluate this change and try to be involved by its side.

4: Do not open a new position on a spike or a dip during the trading day as it is on the current market sentiment forming a trend and it is not on data. The trend can persist and you may not get out on the correction you are looking for. In the same time, it  can be a good chance to get along with the trend.

5: As it is the same market sentiment and there is no change, it is preferred to keep your own position as it is not the suitable time yet to take profits.

6: Try to avoid the thin trading times. The market moves in a side way and it is to be mixed and there is no clear direction and this light trading generally helping correction.

7: Appreciate the resistance and the supports and the instrument movement when it touches it. It is mostly to face strength with the first touch but the second touch can come with an end to these strong levels. No need to remind you that the support becomes a resistance and the resistance becomes a support on the breaking. Most of the stop loses are there and the option barriers breaking can give much more strength to this base.

8: Do not look for these spikes or dips to trade this can waste real chances in the market to take much controllable risk on.

9: The chart you trade on should have the historical resistances and supports and this should be by pointing them out on the long term charts such at the hourly charts if you are a day trader and then you get to the shorter one to draw your intraday lines of the trend and strong levels that you should appreciate in your actual trade and this help you to determine your target and your stop loss clearly and the expected period of time of your trade.

10: Try to be with the pulse waves and avoid the corrective waves. The pulse wave is faster and longer and you can choose the average points on its retracement easier and reasonable and also your cut loss point.

11: Wait for the news. Do not anticipate on the data before it. Take profit on the effect of the data (the spikes and the dips). The rate you receive after the data instantly (especially as the high weighted data such as the US labor report) is much more attractive and exposed to the market profit taken and you can be heavy but take care when you get out as there is a third wave after the correction on the profit taken as the market sentiment has been changed on the significant data and the new direction after these significant data can persist again mostly. It is not the same sentiment after this significant data. When you find a 100% retracement of the first wave on the data it is preferred to get out as the market is mostly to shrug off the data especially if there is a clear trend against these significant data. This can be supported by technical strong levels meeting after the data for forming a new pulse wave inside the trend.

12: The discounted data is always followed with clear profit taken waves can be prolonged than the normal ones.

13: These support and resistance levels can help you in putting your limit orders and stop loss orders on its clear breaking. Consider the major and the psychological strong levels more than the short terms ones.

14: It is preferred generally to open you position on a new anticipated pulse wave on the 38.2% Fibonacci retracement.

15: When you trade on technical reason, you should appreciate the longer term chart than you currently use. You can be tackled by a strong level you do not realize on the current chart you use. So, it is better and recommended to start your draws and trading in appreciation of  the longer term charts than you want to trade on. This can make the strong levels clearer and can help you in your seeking for the best chances. For Example, you may wait for a corrective wave ending to start trading on a 15 min chart but on 5 minutes chart, there is strong containing signaling for reversing. so the larger ranges are very important for placing your position plans.

16: At the serious levels of JPY strength especially against USD, you may find cautiousness on the Japanese intervention threats. This can make the USDJPY meeting with the big figures having especial characteristics making each break of these levels a new strong resistance and you can find the pair well supported above them for a while and then JPY crosses can get some strength such as GBPJPY and EURJPY.

17: The spot hedge option has a psychological effect as it saves you and gives some rest as the stop loss orders. You can use the hedge much more effectively if your broker affords stop loss orders grantees then you can make a hedge before the effective data such as the US labor report with close stop loss orders for each part of the hedge then you have a long winner trade and a short losing trade. Anything but that the hedge is just like the stop loss and you should not go far beyond that! It costs much more interest payment when you have it for more than a day than the normal stop loss order choice. The hedge does not use more leverage but you should not reach this high risk point which is more than 50% of your account amount to take use of this.

18: It is preferred mostly to direct most of your trading time to the European session and the US one on the big market volume and the standard volatility. It is preferred to avoid trading during the light volume of the Asian session and always save your efforts for better chances even the Japanese economic indicators can move the market lightly in the Asian session but the Japanese GDP, Tankan survey and the significant numbers of the Japanese trade surplus and industrial data. Take care that the earlier NASDAQ performance effects on Nikkei and by the way on the JPY and high JPY effect negatively on the Japanese stocks generally.

19: It is better to be an intraday trader when you trade in the spot market. This can help you to get along with any change of the market sentiment and increases your ability to catch up with the new market sentiments and the breaking of the strong levels and the continuations signs of it.

20: Try to be a bargain hunter that you hold yourself till you find the real chance and try to not be involved most of the time this is wasting your chances. Again try to be with the pulse waves and with the change of the market sentiment. Do not hesitate to change your direction on this change.

21: You should close you position at your technical target or on a change of the current market sentiment you are on by data, news or comments and avoid the thin trading and get out of it.

22: Look for some reason to trade and do not look for some price to trade. The market can make a high after high and low after low and there is a reason of that and you should be with. This reason can be technical or fundamental. Do not say it has become so high or so low. It can be go higher or lower as long as it is the same market sentiment and there is no change but just care of the corrective waves when it is to start to go behind 38.2% Fibonacci retracement to 62.8% and total retracement is a strong sign of the market reversing. It is rarely to watch a clear reversing after one top. It is mostly a double top (or a double bottom) or a head and shoulders. These patterns can contain the market technical interest and it can have much more strength after its success to go through each exercising on its way.

23: Take care when the second top is to start to be higher than the first one this is a continuation sign on a new wave and not a reversal sign.

24: No need to average in the light volume and it is preferred to cut loss here. Try to be reasonable when you average and control your taken risk and do not let it to control you.

25: It is preferred to not average if you decided to go along with a corrective wave and you have said to yourself that it has peaked out. It is risky to do and the pulse wave can cause a strong fast damage to you. It is not reliable to do and waiting for the correction is better than being with it. This can save time and efforts and money and much more attractive chances.

26: It is mostly better to wait for 38.2% Fibonacci retracement of the pulse wave to start anticipating for another pulse wave and to start your average too if you have already gone along with the first wave and faced the corrective wave.

27: It is preferred to trade the European currencies in the European session and the US session for intraday traders. These sessions can carry the data and the comments on these currencies which can move them.

28: It is better to wait for the resistance and the supports breaking than going against them and especially on the first try to breaking them. The historical experienced strong levels can tackle you strongly and breaking it can reinforce you.

29: The pattern formation can help you to determine you target but the failure of the pattern can lead to a reverse of the result of the pattern whether it was a continuation pattern or a reversal pattern.

30: It is better to start your normal trading in the normal trading times of the day (not after or ahead of key data or serious comments) lightly and you can average wisely by what you can control easily to catch up with better market rates and try to not go beyond 1/20 leverage of your account on one direction and always determine your stop loss place with each average you take. Do not risk your money and make the stop loss place closer as you can especially if you had placed more weights.

31: Please try to take the positions that can be kept over the mid and long term mostly. This can lead you to an earlier closing too.

32: If your broker grantees the stop loss and the limit order you place, you can put your limits 15 minutes before the strong key data. If not then trade two, one against one put very tight stop loss if you placed the limits and if one of them has triggered in spite of you then place your stop loss directly to this triggered one and closer to the entry rather than the other untriggered one. If you find that you can not place any limit before the data remember again to make one against one and if one of them has stopped by its stop loss no problems as this means profits on the other part.

33: If you want to anticipate before the data do not trade without a stop loss order.

34: The profit taken is light and just one the spike the next wave is just when you see a consolidation after the profit taken and it is light again.

35: No need to do average more than once according the same sentiment no need at all but you should just wait for this change of the current market sentiment. So try to be light and do not be in love with your positions if there is a clear change against you even if it had not made the negative impact against you yet but it is just threat you and form a new resistance against you.

36: If there are more than one indicator are waited to be released in the same time and one came against the other then it is a good opportunity to take profits on the release that has moved the market directly.

37: The technical indicators can help you to determine the over bought and over sold conditions and they are useful in the sideway market and they give you clear points to open new positions. But using the Elliot waves is much preferred when there is a clear trend persisting and it can give you reliable points to open your new positions too.

38: Light trading increases the correction probabilities.

39: Please take care after the big amount of profits that you should be always wise and do not increase your risk and keep your pace of risk as always and do not put much more risk to make profits in a constant way.

40: You should be patient seeking for your hunt and the most valued hunt is the end of the corrective wave. When you are inside the trend and you have seen a consolidation. It can help you as it is to reach your trend line which can show you whether to get out or to have an end of this consolidation. So you should care of the trend line and the time line of the trend that you trade on. Mostly the corrective wave end is well known with strong reverse on reaching it. So wait for this sign. So the time is an important factor too and it is in need to your patience.

41: Please take care of the continuation signs inside the trend anticipation for further persisting of the trend heavily is better than anticipation for a correction from it and if you have done this for the correction please close your stop loss to the average as much as you can and do not hesitate to close your loss and this is the speculation for the correction and it is mostly uselessly especially as there is no signs yet of the reflection. You make money mainly on these continuation signs safely. They are many and reliable most of the time especially as there is no sign of the correction as strong resistance or support level tackles the trend for a long time relatively to your trend.

42: You may like to make an average before triggering your stop loss. You can do but close on the stop loss of the prime position and consider the average your last hope before the stop loss triggering no need to move your stop loss especially if you have had already a high used margin can be 20% of your account.

43: When you want to determine your strong levels on the chart (the supports and the resistances) try to choose the most experienced ones which show you end of the bars on meeting them to be accurate as the strong level clears to your decision especially to take your profit or to place your stop loss or even to average on meeting it with a close stop loss order on breaking it.

44: When you take your average position you should appreciate your stop loss place as each average position has its stop loss place. It is normally to close your stop loss place to your new average entry to reduce the risk. It is preferred to stop your loss waiting for the change or the strong level to anticipate. The average decision can be ok if it is near the strong levels and reasonably.

45: Do not run behind your loss just trade normally and leave this to your high amount of success percentage to come back above your loss. It is better than using high leverages. Your stop loss tactic is very important to reduce your loss for better chances catching up with better market condition than the loosing one you are at currently before the cut.

46: It is better to speculate on the next expected move than waiting for meeting the support or the resistance for making an average. However it can be good to close your position on your target at the strong level meeting and you should take care that breaking this level is a continuation sign.

47: You should be light on your speculation on a corrective wave with a closer stop loss.

48: Try your best to choose the best to buy and the best to sell abstractly.

49: Please try to be with the current market sentiment as long as you do not face a resistance and you see the market going with you. Taking risk at these circumstances is preferred but you should always have a stop loss place and a care of the resistance you can face to get out.

50: When you trade in the Asian session, please take care when you trade crosses as the JPY is the effecting not the USD. So it is preferred to buy or sell the JPY on its trend or its current sentiment. It means that if GBP is weak and JPY is weak GBP JPY can go higher mostly for instance.

51: You can make good profits on the risk control you do. It is preferred to be always with the pulse wave but if you wanted the corrective wave you should be light and you should not make an average. If you take the right risk the market volatility can make the profits each time constantly and the profits will be more than the losses but you should not be emotional on the loses this can cause a damage to your risk control especially if there is a clear break of a certain strong level. So try to save your time and your efforts and your money for the pulse one joining the pulse wave can make at least 7 winners of 10 players. But these three times of loses can cause a serious damage if there is not minded risk control with no hesitation in time. So you should always hunt for this pulse wave on the persistence of the trend on the chart and do not depend just on your risk control but you need to be patient looking for the persisting sentiment and then the corrective waves can help you and it can help you in putting your stop loss too.

52:  It is not preferred to take profits on the rate decisions, especially, on the US assessment after the fed's rate decision. This can change the market sentiment.

53: You have to care after the data whether there is an immanent profit taken or not if there is no profit taken this means another widely expected prolonged wave in favor of the data. There is an actual change in ask and bid on these significant data.

54: No immanent profit taken is a clear continuation sign.

55: Total retracement on profit taken is a clear reversing sign.

56: You should wait at least 10 seconds after the data to start take profits on a corrective wave.

57: The conditions of the market before the data is a very important factor in evaluation the market discounting degree which can show you the strength of the profit taken and the change of the current market sentiment.

58: It is always recommended to make profits on your market understanding than risking your funds then you are really a professional trader. So always be wise and do not give chances to the market to drag you.

59: Do not expose yourself to the market fluctuations price during the day. It can be ok for several times but its loss is always sever to your account and waste all of your effort uselessly. You should have a direction in mind on your analyses to expose yourself our main rule is that you should have some reason to trade not some price to trade. Missing his point causing of the most loses of the Forex traders specially the beginning. Please be aware of that.

60: You should always have a stop loss place at the beginning of your trade. Your taken risk level should be balanced that you should reduce it on the volatility not the opposite! Then it is your certainty degree to trade and to close.

61: The stop loss order is not as you are outdoors carrying a position but it is to be paced where you see a clear reverse at.

62: It is wiser to look at the current market condition than looking at your equity in loses or in profits. You should have what the market gives not what you want.

63: The stop loss place is a relative thing. you are always exposed but you should have a stop loss. Then you can choose your accepted downward and your unaccepted one too. The stop loss help you especially after a consolidation period as the breaking of the barriers of the consolidation can be in form of a trend fueled by market stop loses.

64: Do not repeat your position after the stop loss as long as you have chosen a well place for it.

65: Generally, as long as you see further rooms against you, you have to close your current position. There can be a trend and further loses. so do not rely on average on this case waiting for further losing rooms!

66: The direction in the normal trading times of the day with a market sentiment forming a trend should not be defied but just wait for a correction of it or join as it is the current market sentiment. Whatever it was fast or excessive but it is the current direction. You can wait for a higher low to join that trend or go with it with a stop lower than the current bottom using a stop loss behind on these lines breaking is recommended. Caring of that trading just after the data is something else as it usually followed by a profit taking wave.

67: Do not test the market but wait for the market to exercise your experiences and analyses.        

                      

 

 

68: You can see how the market has reacted clearly to the US labor report. the market was expecting the US labor report to come at 200k for November 2004 but it has came lower than expected at just 112k. GBPUSD has made the spike on the data and here you can see clearly that in spite of the main dovish sentiment that was containing the market the profit taken has happened on the data clearly as most of the buyer are taking profit right there on this new level that has been caused on the data which has lead the pair to come back again lower than 1.93 level but the current market sentiment has been changed on this new data causing new buying for the pair on a third wave after the data and this has caused a new high breaking above the resistance at 1.936 and this was helped by more strength on the main trend of the USD dovish market sentiment. Also it is clear on the chart the squaring of USD selling that what has been done in the day before the data. There was also an increasing of USD selling before the data on the market tendency to sell USD on the data anyway especially as the market was already discounting good data and the main bearish trend of dollar can give much more strength to the profit taken wave on the data.

But it is not welcomed as we have said before to take risk before this important data and as you have seen that it is very good to wait for the data to take profits and even on this dovish market sentiment of USD as it is not just the main market sentiment before the data or the main trend or what is the market discounting but it is also the significance of the data what can determine the end of the spike of the first wave on the data or the profit taken wave or the third wave on the change of the current market sentiment on these new data.

Trading on the third wave or on the change of market sentiment after taking profits on the data, should be lighter than the profit taken trading. As here you start for the anticipation of an end of the profit taken wave and you should cut loss if there is breaking of the level of price that was before the data as this means that the profit taken wave can persist and this can be done if there is a high discounting level of the data or the data was against the main trend of the market and the main sentiment should persist by bargain hunters.

69: It is always preferred to take your risk on the midterm. This keeps you from the forex market fluctuations and it always gives you a time to evaluate and think.

70: The first step to loss more is comparing your current loss with your big previous profits regardless of the current losing position condition looking at your account balance. This can maximize your loss comparing with your other winning positions eroding your results.

71:

 

These are the day trading of US Q3 GDP 2009 first reading release which has come up yearly by 3.5% and the market was waiting for just 3.2%

You can see step by step how the risk has been taken by the data and after it on the market discounting and the change of this discounting after the data which could change the current market sentiment but on speculation that these data will have a short lived impact as it is a lagged counted indicator and the market should turn back to its latest pricing which was already negatively impacted by the weak consuming confidence figure of October which is always read as a leading indicator of the demand and the current recovery pace.

So, you should have the capability to have the current market discounting degree by the data and after it for trading these data and its consequences on the market pricing in appreciation of the technical studies for choosing the best to buy and the best to sell at the best timing on your experiences, trading skills and studies. So, please do not try to take such risks before being well-trained.

Best Wishes

Global Market Strategist
Walid Salah El din

 

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