The other support was of course 1.9978 which I pointed out in my post at http://www.forexfactory.com/showthread.php?p=1563833#post1563833
This formed a low which was confirmed by the next candlestick before the upmove of more than 120 points.
You can read my thoughts prior to this happening also at the forex vibes forum.
Link: http://www.forexvibes.com/forum/showthread.php?p=794#post794
The next available trade using my system from my members program one to one session - http://www.fasttrackforex.com/members was to short cable at 2.0135. We are currently at 2.0113, so to lock in 12 points of profit a trailing stop loss of 10 points can be applied at this stage and see where it goes.
Wednesday, 29 August 2007
Tuesday, 28 August 2007
GBP/USD Buy Area...
I am thinking about buying the GBP/USD if we see during between now and the next 225 minutes a return back down towards 1.9958 and then the market reverse again back towards 1.9970 area where I will buy. I want to see a test towards 1.9958 but not neccessarily so far first and then I would buy only if we start moving up again to at least 1.9970 depending how far towards 1.9958 we actually go if at all. That buy will be good for the Asian session I would hope. I would try to squeeze 20 pips and put in a trailing stop at 8 or 9 pips probably. Because there is resistance above right now on one of my systems for tomorrow I would be careful in the morning although there could be a lot of profits in store if the UK session gives a strong pound in the morning like today with the spike. That's all for my technical analysis right now.
My forex broker is an offshore broker in Cyprus. Anyone who chooses to trae the forex market (online currency trading) as a retail investor will most probably use a broker as a middle man to facilitate trading with similar quotes to what the market makers are giving out.
I recently received this email from a forex broker which will be of particular interest to forex traders wishing to trade through a broker regulated in the US by the FDA.
"Our industry's regulating agency, the National Futures Association ('NFA', has proposed new financial requirements for every Forex Dealer Member [ie a forex broker]in their 'Request for Comments on Forex Proposals, ted June 19, 2007, the NFA' proposed requirements call for the following:
= All FDMs must maintain at all times a net worth of $5 million;
= Larger FDMs, particularly those that have a dealing desk, could potentially face net excess capital requirements significantly higher than the minimum under the proposed new rules;
= Where appropriate, the NFA may require an FDM's annual financial statement to be certified by an independent public accountant.
We believe the NFA is proposing these requirements because of the troubling number of insolvencies and near-insolvencies that have recently plagued the forex industry. According to the NFA:
In 2003, a Forex Dealer Member misappropriated almost $2 million in customer funds, driving the company into bankruptcy. (The CFTC is currently attempting to salvage some of the customers' funds.)
Since March of this year, eight different FDMs have fallen under the 'early warning' requirement of $1.5 million.
More recently, NFA took a Member Responsibility Action ("MRA") against an FDM whose liabilities exceeded its assets by over $1 million.
Industry-wide, there is now concern that some Forex Dealer Members may be unable to meet their financial obligations to customers in the event the increased capital requirements take effect.
A review of the current net capital positions of the 43 Forex Dealer Members available on the CFTC web page clearly demonstrates that this concern is justified.
As you can see from the financial data compiled by the CFTC, FXCM reports an adjusted net capital of over $44 million—far greater than the proposed financial requirement.
Based on the most current available CFTC financial data, at least 22 FDMs would not be able to meet the new $5 million minimum net capital requirement. These firms are currently reporting net capital levels below $5 million.
If the new capital level is imposed, these firms will either have to obtain more capital or close down.
Because larger brokers may also face higher capital requirements, FXCM believes that several of these larger firms may also be unable to meet the new requirements, even though they presently have in excess of $5 million in adjusted net capital.
In the event that some of these firms close down or worse, are shut down by the NFA—we are concerned that customer funds, or at least their timely and orderly repayment, could be jeopardized.
We realize that many forex traders have accounts with multiple forex brokers. That is why we advise you to make sure all your trading accounts are held at firms that are adequately capitalized.
If you have an account with a possibly endangered firm, we believe, depending on when the NFA proposal takes effect, that the time may be fast approaching to consider moving those funds while the opportunity still exists.
Our industry is changing, and the new proposed regulations are intended to put every FDM, and the industry itself, on a more secure financial footing.
We welcome the NFA's proposed changes because the effect will ultimately lead to clients trading through regulated brokers that are better capitalized or have access to greater financial resources.
I recently received this email from a forex broker which will be of particular interest to forex traders wishing to trade through a broker regulated in the US by the FDA.
"Our industry's regulating agency, the National Futures Association ('NFA', has proposed new financial requirements for every Forex Dealer Member [ie a forex broker]in their 'Request for Comments on Forex Proposals, ted June 19, 2007, the NFA' proposed requirements call for the following:
= All FDMs must maintain at all times a net worth of $5 million;
= Larger FDMs, particularly those that have a dealing desk, could potentially face net excess capital requirements significantly higher than the minimum under the proposed new rules;
= Where appropriate, the NFA may require an FDM's annual financial statement to be certified by an independent public accountant.
We believe the NFA is proposing these requirements because of the troubling number of insolvencies and near-insolvencies that have recently plagued the forex industry. According to the NFA:
In 2003, a Forex Dealer Member misappropriated almost $2 million in customer funds, driving the company into bankruptcy. (The CFTC is currently attempting to salvage some of the customers' funds.)
Since March of this year, eight different FDMs have fallen under the 'early warning' requirement of $1.5 million.
More recently, NFA took a Member Responsibility Action ("MRA") against an FDM whose liabilities exceeded its assets by over $1 million.
Industry-wide, there is now concern that some Forex Dealer Members may be unable to meet their financial obligations to customers in the event the increased capital requirements take effect.
A review of the current net capital positions of the 43 Forex Dealer Members available on the CFTC web page clearly demonstrates that this concern is justified.
As you can see from the financial data compiled by the CFTC, FXCM reports an adjusted net capital of over $44 million—far greater than the proposed financial requirement.
Based on the most current available CFTC financial data, at least 22 FDMs would not be able to meet the new $5 million minimum net capital requirement. These firms are currently reporting net capital levels below $5 million.
If the new capital level is imposed, these firms will either have to obtain more capital or close down.
Because larger brokers may also face higher capital requirements, FXCM believes that several of these larger firms may also be unable to meet the new requirements, even though they presently have in excess of $5 million in adjusted net capital.
In the event that some of these firms close down or worse, are shut down by the NFA—we are concerned that customer funds, or at least their timely and orderly repayment, could be jeopardized.
We realize that many forex traders have accounts with multiple forex brokers. That is why we advise you to make sure all your trading accounts are held at firms that are adequately capitalized.
If you have an account with a possibly endangered firm, we believe, depending on when the NFA proposal takes effect, that the time may be fast approaching to consider moving those funds while the opportunity still exists.
Our industry is changing, and the new proposed regulations are intended to put every FDM, and the industry itself, on a more secure financial footing.
We welcome the NFA's proposed changes because the effect will ultimately lead to clients trading through regulated brokers that are better capitalized or have access to greater financial resources.
Thursday, 2 August 2007
Forex Trading Blog - Intro
Welcome to my forex trading blog.
This blog serves as an adjunct to my other forex trading blog
link: http://www.sambeatson.com
This blog will probably become a forex tips/forex signals blog although I don't like giving these, I prefer that forex traders learn to trade for themselves, with support, rather than relying on someone elses forex signals.
I recently sent an email to my community of forex traders highlighting the benefits of becoming a forex trader. It's important we realise the pros and cons and not just the pros, but nonetheless the pros are motivating in themselves...
Sam Beatson's Forex Advantages
1) A 5 hour work week
2) Full time income (of your dreams) working part time hours
3) More time for you and more time for your family (ie your children, spouse, partner etc.)
4) The opportunity to enjoy yourself at work and at play
5) The rewards of knowing you are financially abundant
6) Being able to work ANYWHERE with ANYONE at ANYTIME with only a laptop computer and internet connection (think paradise islands, tropical beaches, waterfront homes)
Sam Beatson's Forex Disadvantages
1) Risk - if you are too risk averse it will cause you problems
2) Potential for loss - a 50% loss of capital requires 100% gain to get back to even
3) "Bird Watching In Lion Country" (this forex ebook of the same title)
4) Amount of patience, discipline, emotional management, persistence required
5) Until mastered, you will lose money
6) Mastery can take time, mentoring, effort and an extreme amount of resolve to not give up.
I don't want you to think I am peddling the pros and ignoring the cons, so lets start off on the right footing.
To be successful in the forex market, whether your goals are simply to be a full time online currency trader, or you desire to become proficient and gain results that would allow you to work quite easily with the right contacts in institutions you will require a significant amount of dedication, patience, persistence and resolve not to give up.
This blog be practical in the information it gives. I will outline some of the things that I do personally to get results in online currency trading - the forex (foreign exchange) markets which operate 24 hours per day, without centralised exchange. A basic course for newbies is available from here: FOREX SECRETS EXPOSED
That's all for now,
Sam Beatson
http://www.sambeatson.com
THE Master Forex Trainer
"Envision Forex Freedom, Realise Your Financial Goals"
PS. My forex ezine subscription is FREE to new members. You can join directly via http://www.fasttrackforex.com All it takes is you using the simple sign-up form - name & email address and confirming that you have signed up via the link we will send you to your email...And we hate SPAM, so will not rent, sell or lend your email to anyone. Sign Up Now!
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