eurusd (eur usd eur/usd usdeur usd/eur) trading (short time intervals example)

(READ REAL-TIME BOTTOM CALL AT END OF THIS POST)

You should read this post from an educational perspective. It contains three types of trades: how to trade during a topping process, how to trade between a top and a bottom, and how to trade a bottoming process.

Trading during the topping process:

eurusd (eur usd eur/usd usdeur usd/eur) trading (short time intervals example):

We did some trading on forex few moments ago. It is trading using very short time intervals. Opposite to what some people may think, trading shorter intervals is risky as the gains are small and if a larger bar comes along and price goes against (and you do not have a stop) then you incur large losses compared to gains. On the other hands if you have tied stops, they you get get stopped out easily.

I did nice trades for short time intervals (because this is done before going to bed, and I want to close the trades before doing so).




Attached charts shows the action. When eur/usd moves a pip in your direction you make 10 dollars per contract. For instance, a move from 1.2925 to 1.2930 is 5 pips or $50 dollars.


Keeping a position between a top and a bottom:


After the series of micro short term trades, here is a multiple hours trade that we plan to close soon. The trade has made 250 pips at one point, but we just checked it now (9:10AM). It has now more than 225 pips gains. We plan to close it on possible retest of lows and fail.

9:20AM: we just closed the EUR/USD short trade. Profits are 230ish pips.

Trading the bottoming process:


Few minutes after closing the short trade at 9:20PM, we made a series of mirco-short term trades, similiar to what was done earlier today. The difference is that this time the trades are made on long side.

The purpose of these types of trades is to show you an example of how to trade at a top, between a top and bottom, and in a bottom!


11:08AM: We just started scaling for what we think is the area of the bottom for today for EUR/USD. Entered at 1.2673

11:16AM: with eur-usd at 1.2653, the entry is completed. Direction is long. Average price is around 1.2660.

11:44AM: with eur usd at 1.2680, we took profits on the long position.

11:55AM: short covering of EUR/USD latest today's low seems to be at the end. We started trading it on short side for some fast trades. first entry on short side at 1.2710.

12:08PM: eur/usd at 1.2690 area. We closed the latest short side trade established in 1.2710 earlier. If you followed this trade, if we were you we would close it.

Safer trades would be to buy on restest of today's low if it restests and fails, or sell any sharp rallies if it goes to 1.2750 area.

We are done with trading EUR/USD today (unless we see some good trades). Have a good weekend!

spx qqqq dow dia sp500 trading price prediction

spx qqqq dow dia sp500 trading price prediction

12:37PM: all long stock market positions profits should be taken off.

12:41PM: with NDX at 1174 we are scaling in on shortside of NDX. Position size is a QUARTER of normal trading size.

12:58PM: with NDX at 1176, entry is complete.

Profit taking:

2:05PM: NDX is now at 1164 after hitting 1163 a minute or two ago. We can covering the short position.

Re-entry of QQQQ short position (it is a short premium options position on QQQQs):

2:29PM: with NDX at 1174, starting to scale back in in short position on NDX (QQQQ etf stock). Position size is a quarter of normal size position.

2:34PM: with NDX at 1179, short NDX entry is complete. Thanks to the market for its cooperation. This may be the last opening trade for today. We may keep the current position till tomorrow, as it will earn premium since it is a short option position.


2:42PM: ALERT: NDX SHOULD START FALLING ANYTIME SOON. THIS SHOULD BE THE TOP OF TODAY. LAST CALL TO EXIT LONGS, AND GO SHORT. NDX at 1181.

2:55PM: we have added a SECOND QUARTER of normal position size. Direction short NDX. NDX is at 1184.ish.

Fidelity and Financials EFT (XLF, FSRBX) in Retirement 401K Account Investing (Profit Taking)

Fidelity and Financials EFT (XLF, FSRBX) in Retirement 401K Account Investing (Profit Taking):

(Read brokerage account trades made today below. Added in afternoon)

At close of Thursday November 20, 2008, we wrote that we were entering a position in financials EFT by buying shares in fidelity select banking fund (FSRBX). The details of this are in one of the posts in this blog on Thursday Nov. 20, 2008.

As close of Nov. 20, 2008, XLF was in the 9.20s. Our target of XLF at $11.75 area has been reached. Since there might be a retreat before the market closes, we have hedged the retirement position in a brokerage account.

The current plans is to cover the hedge at the same close as when we take the retirement position off (probably at today's close).

Our hedge was initiation with XLF at $11.95 (shortly after today's open this morning). It is always possible that XLF finishes higher than our entry price today but it is is less likely as we forecast a resistance at around $12.00.

The returns on this position are about $2.70, which is about 28% (28% according to trading accounts but my calculator tells me it should be a bit more than that) return on our retirement account position.

Not a small feat in just less than 3 trading days!

TRADES IN BROKERAGE ACCOUNT:

We made the trade as per image attached. THREE LONG NDX TRADES, and TWO SHORT NDX TRADES SO FAR. All are profitable. A sale of a QQQQ PUT is long NDX. A buying of a QQQQ PUT is short NDX. You can pin point the time on an NDX chart given the time stamp attached.



2:28PM: with NDX at 1131, we closed the last long NDX qqqq trade established about 2:15PM.

3:05PM: with NDX at 1148, we are going short NDX.

3:23PM: NDX is now at 1138. Since we have other matters to do and cannot watch it, we will take the profits off. Profits are 10 NDX points for this last trade.

To your profits, and long live the blog!

The Carry Trade Is Back (How to take your piece of the action)

(November 24, 2008: PROFIT TAKING ALERT. 10:15AM with NDX at 1119, we are taking profits on long position. Deatils will be included in post later today)

10:32AM: with NDX at 1134, all long positions are closed.

10:33AM: with NDX at 1135 starting to scale in one quarter of normal size position. Direction: short NDX.

There was a typo in email address below. Thanks to the person who noticed it. It is:
temasek.trust (at)gmail (dot) com

10:53AM: I have something to attend to. I am closing the short position. NDX is at 1125. Profits on the covering of short position are: 10 NDX points.

The bottom of Friday is confirmed. The correct way to trade is to wait for pullback to enter long positions. There might be a short retreat from area of today's top to area of 1100/1080, but it is not guaranteed.

If this rally is to be strong, it has to end the day at or above area of 1110.

11:56AM: with NDX at 1139, we are scaling in one quarter normal size. Direction: short NDX (and stock market).

12:28PM: (again something came up, and I have to leave). NDX is now at 1121. We taking the profits as I cannot watch it. Profits are: 18 NDX points.

No position is left open during my absense, and all positions have been profitable, with no loss (or -1 point) after entry. It has been a good day, but I have to go. If there is a further selloff, I will review the market later and determine if I will re-enter the longs and at what level.

To your profits!


The Carry Trade Is Back (How to take your piece of the action):

Carry trade is best known in forex trading (but is not limited to forex trading).
The idea is to own an asset (such as a currency) that pays a rent/interest/dividend
and finance the purchase using a currency that requires a low interest rate.

All work is done online in your account via your broker. You do not require asking for a loan or anything such things.

The beauty of a carry trade is that if you enter at the bottom, is that you place your trade, sit back and do nothing. You are paid your interest everyday at 5:00PM.

In addition to the interest, if you asset rises in price, you also pocket the appreciation in price of your asset. It is like owning a rental appartment bought on a loan (in this case interest rate is very low (.5%)), and rent it (in this case
the rent is the interest which vary depending on your assets).

Carry trades are the bread and butter of old finance, young graduates starting a hedge fund (before blowing up :-)), and of course smart money who enter early (and leave before they are thrown out).

A lot of people came late to the last golden era of carry trade.
The last good time for carry traders was when we called the top on this blog for all carry trade pairs, the queen of which was EUR/Yen. Since then it has been hell for carry traders. But now the corner to hell is starting to appear, this time for the sellers of some carry pairs.

The recent selloff turned the clock back to the period of 2003. Believe it or not, they would do a similar game once more. They would play even then exact same game they played, but they would possibly change some pairs.

The good pairs are not known. That is why we are here to help you find them.

The easy way to play the carry trade for average investors with limited means and experience (and/or those who do not have time to stay in front of screens) is the currency market. You can start very small. There are brokers who can get you going even for $1.

We have looked at the various pairs. With a 10:1 leverage (you can also use 400:1 leverage but we do not recommend you do that as you may be stopped out), you can make between 50% to 150% per year as interest payment to you, using a set of pairs we have short listed, and for which we believe the downside is limited. You will also be shown a way to enter your position to minimize risk.

We have agreed with an entity who has accepted to prepare and market a report that explains which currencies to buy, how to buy them, which brokers to use, and how to place trades, open accounts, etc. All the details of what needs to be done are in the report. The entity will finalize the report and do all the sales processing and management. They will pay us a small royality per sale depending on how well they do. If they do not sell a lot, we get nothing.

The readers of this blog will get a price discount (50%). You should expect a price that would be like something like "pay me a drink" type of price.

The person who is writing the report has a degree in finance journalism.

Send an email to the following address if you want to consider buying the
report. Mention in the subject line or in the body of the email that you are a reader of the financialtraders blog so that you can have the 50% discount. There will be two pages containing the offer (one with the discount, the second without it). You choose which ever you like. The information will be sent to you from the entity that will manage this.

The entity to which you should send an email is the Temasek Trust. Email address is temasek.trust (at)gmail (dot) com . Write that the editors of financialtraders blog have sent you. Subject: Carry Trade Report. You will be sent a link (as soon as it put online) of where and how to order the report.

As for regular trading, tomorrow is an important day for the confirmation (or lack therefore) of the Friday November 21, 2008 stock market bottom. Stay tuned.

Happy trading,