Learn How To Trade – Zoom Out

I wonder if the blog would have become more popular “faster” if maybe I’d named it “Central Bank Insider” or maybe “The Guy Inside” as I’m sure by now, the odd one of you must be wondering….”How the hell did he know the dollar was gonna do that”?

Perdoname pero, on occasion I’ve got to do a bit of “shameless promotion” here as the financial blogosphere is a cut throat world full of “snake oil salesman” and “wanna be gurus”. If you want to stand out, you’ve really got to make a name for yourself – and credibility is everything.

The “long USD” trades have been absolutely unbelievable – as seen through the monster moves against EUR, GBP and CHF. Gold has again “cratered” in its wake, and we “still” see equities hanging in near the highs.

I caught literally THE ENTIRE MOVE – as I was well in position “several days” prior to lift off.

How did I know?

One of the best pieces of advice I can offer traders / investors looking to find these “magical entries” is to zoom out and start looking at longer term charts. Identify areas of support and resistance, and PLAN AHEAD as to what you might do “if and when” price comes to you meet you.

If we take another look at the “weekly” chart of $Dxy ( just as an example ) it’s painfully clear that the area “around” 79.00 ( remember – I draw my horizontal lines of support with a crayola crayon NOT A LASER POINTER ) held some significance.

Lining up your “longer term technicals” with short term news/events as well fundamentals/monetary policy changes etc creates a powerful combination and a solid method for “seeing the future”.

The further you zoom out – the more powerful / legit / stronger the lines of support and resistance become!

Long term planning and “mucha paciencia”(much patience) makes some of this almost seem easy as – you are already “ready and waiting” when price comes to you.

25 Responses

  1. robert November 1, 2013 / 11:06 am

    Hi kong! Very nice trades! Just that equities refuse to follow the script once again.. looks like it is time to abandon its manipulated ass..

    • Forex Kong November 1, 2013 / 11:33 am

      Bang on Robert…..equities continue to grind higher as……they will look to pull in every single sucker on the planet before dropping that thing like a rock.

      I’ve nearly given up including it in any “ration” analysis.

      It’s a con job on the highest level – and I can’t participate in that.

      • robert November 1, 2013 / 12:07 pm

        Looks like the “save” is here once again whenever it looks like it is about to break down..

        • Forex Kong November 1, 2013 / 12:19 pm

          You’ve got it Robert.

          Keep in mind…..getting “bearish” U.S equities is like sitting at a poker table “heads up” with a guy holding a “never ending chip stack” and a dealer with a stacked deck.

          As much as the fundies are screaming – this thing is a joke – we can’t ignore who we are up against.

          Know this……we are at a “top” ( a painful one indeed ) but a top none the less.

          Patience (again) the key.

  2. Andy Jackson. November 1, 2013 / 11:09 am

    Ok, that explains how you did it.
    It doesn’t explain how you knew I was thinking “how did he do that?”, the misses didn’t know when I asked her either.

    • Forex Kong November 1, 2013 / 11:38 am


      I forgot to mention…as well as the spaceship I’m currently building on the rooftop patio, I’m currently in the “test phase” of another hobby project – that being mind reading / sensing technology.

      I’ve been on you for weeks my good man……

    • robert November 2, 2013 / 7:55 am

      Hi kong. This top can probably go much much higher..having underwater shorts on spx is no fun. Do u see it going pass 1800?

  3. kevin1959 November 1, 2013 / 11:12 am

    Outstanding Blog and Calls.
    Have a great weekend.

    What do you see for next week?

    • Forex Kong November 1, 2013 / 11:49 am

      Thanks Kevin.

      We are in some “very interesting times” here as of late so….week to week – wow.

      I look long term (obviously) but trade it short term. “Medium term” is always a challenge.

      I think USD will be reduced to the price of toilet paper looking “loooooong term” so….that’s always in the back of mind ( as I hate being long USD ). The move off 79.00 has been dramatic (as suggested) so…..it’s not beyond me to consider we’ve already seen the majority of the move.

      That being said…..oh man….I better get a post together.

  4. kevin1959 November 1, 2013 / 11:14 am

    Outstanding Blog and Calls

    Have a great weekend

  5. brosbhos November 1, 2013 / 11:26 am

    Preparation is half the battle they say. If feels like you’re well prepared. And you don’t fail to execute your plan and follow through, which i believe is as important. You deserve your success, and thanks for sharing. Incredibly valuable for us.

    • Forex Kong November 1, 2013 / 11:57 am

      At some point “for all of us” the pieces of the puzzle “finally” come together.

      The planning then execution etc….a guy’s just gotta stick with it long enough to get those “little pieces in the middle” as most people just give up too soon.

      Thanks for the continued support “bro”.

  6. elena November 1, 2013 / 11:27 am

    hehe, that simple? but very hard to replicate. like your approach, kong. brilliantly simple and simply brilliant.
    btw you look tired, have some rest 🙂

    • Forex Kong November 1, 2013 / 12:10 pm

      Well for most……the biggest “unknown” being the psychological element.

      I could write a book, or perhaps blog to eternity as to how this has all come to be – “psychologically”.

      It’s just too involved, and to a certain extent “too personal” as….you need to be a certain type of person / have a particular angle on things to seriously “look this thing in the eyes” and stand your ground.

      I learned to “survive” long ago – and a large part of this really amounts to having the will / belief that you “can indeed do this”.

      Again….most people just give up…before they’ve really even given it a fair shake.

      I do need some rest.

  7. Jworthy November 1, 2013 / 11:30 am

    Very helpful. Thanks a lot for this sage advice. The reminders about patience and “if – then” planning are particularly helpful.

    And hey, congrats on topping last years (very impressive) returns!

    Have a nice Friday!

    • Forex Kong November 1, 2013 / 12:13 pm

      You da man Jworthy.

      A solid yet difficult year all around.

      All the best to you as well.

  8. rolo November 1, 2013 / 12:03 pm

    Great trades on long USD Kong thanks – I’m still holding for more !

    • Forex Kong November 1, 2013 / 12:15 pm

      Take some profits Rolo.

      It’s been fast n furious, and ya…..wow!

      Put some “real” money in the bank – and go party tonight.

      You’d be one of the “lucky ones”.

      • JSkogs November 1, 2013 / 2:01 pm

        so funny you’d say go party with the money. We all have had several jobs I’m sure. For some reason partying with trading profits is always way more fun than my business. Its not like trading isn’t work

  9. David November 1, 2013 / 4:27 pm

    Awesome to see your yearly profits already ahead of last years Kong!
    Great calls once again. I covered my EUR/USD a little early at 1.36 with good profit but I’m absolutely swimming in pips on that EUR/CAD short. Great way to start the weekend!

  10. PT November 1, 2013 / 5:55 pm

    Outstanding work, Senor.

    But gold really didn’t crater. The miners did. Why the disparity?

    Have you banked your USD longs, or hanging with it? Gracias.

  11. Power Corrupts November 2, 2013 / 3:12 pm

    Kong! “you need to be a certain type of person” ‘truer words’… it’s a zero sum game, right? when you go into the cage with the man eaters you better be cool if you want the show to go on. my hat’s off to you man!

    • Forex Kong November 2, 2013 / 4:15 pm

      Since I was a kid – tell me there’s something I “can´t” do….and I’m half way into it before you’ve got the words out of yer mouth.

      To the point of fault, I take challenge to the extreme.

      With no formal training / prior knowledge I consider “trading for a living” the absolute top of the list most challenging thing I’ve ever taken on……

      When I get bored……I get into trouble. Lots of trouble!

      A double edged sword to a certain degree….but “it’s the road I’m on”.

      Again…thanx for the continued support as….you’ve got it right – you enter the cage…….you better be ready to fight.

  12. ezyfx November 2, 2013 / 7:13 pm

    I picked up over 16% on the week. Oh how I wish I could do that every month, let alone every week. My most profitable trades were from shorting eur/jpy, gbp/jpy and eur/usd

    • Forex Kong November 3, 2013 / 7:49 am

      Those trades will likely pick up steam here soon ( as I was going to get a post together on EUR/JPY )

      It’s long term divergence and hugely overbought conditions have it ripe for “picking off” next.

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