One of my computers called me about an hour and a half ago.
Plucked from the grasp of yet another “unsettling dream” ( for what ever reason I am continually plagued by dreams of having my teeth pulled / ripped / removed / taken in ever increasingly “bizarre fashion” ) I welcomed the alert, and eagerly leapt from the bed to silence the soft repeating tone.
Several trades had been picked up, and to my surprise – the U.S Dollar taking a relatively huge hit as the London sessions moved into their first couple hours trading. My surprise? Of course not – you know that. Everything moving accordingly to plan with the added bonus of still having every single tooth intact! How wonderful!
And with so many caught in nightmares of their own, gobbling up useless news stories of tapering and the assumed effect of a “much stronger dollar”.
EUR and GBP are obviously the biggest winners here as per trades in the comment section some hours ago as well a quick tweet.
The “tooth removal” dreams are extremely unpleasant, and it’s really no wonder I don’t sleep a whole lot. Thankfully I was “saved by the bell” here this evening, and rewarded with some fantastic trade entries.
In celebration I plan to eat 3 lbs of chocolate, a full tub of ice cream and as many stale candy canes as I can wrestle from the kids across the street.
UPDATE:
I can fully understand that this must be moving way to fast for some of you as…..only hours later (in fact less ) I’ve already banked just under 400 pips across the board in 6 pairs total, and will now be looking for pull back on smaller time frames – and of course re entry.
When some of this goes down in the “dead of night” I don’t imagine there is much some of you can do about it , not having the alerts / computers chiming, the lifestyle ( never sleeping, no kids , no other job, likely insanity ) let alone the interest / dedication / commitment.
We’ll have to find a solution moving forward.
The Reality of Professional Forex Trading: Beyond the Headlines
Why the Market Ignored Taper Talk
While retail traders scrambled to position themselves for the supposed dollar strength that “should” follow tapering discussions, the institutional money was already three steps ahead. The EUR/USD breakout above 1.3750 resistance and GBP/USD surge past 1.6200 weren’t accidents – they were the result of smart money recognizing that Fed policy normalization is still months away, regardless of the noise. The algorithms don’t care about headlines. They care about order flow, positioning data, and the simple fact that European economic data has been consistently outpacing expectations while U.S. data remains mixed at best. When you see 150+ pip moves in major pairs during thin London morning hours, that’s not retail panic – that’s institutional repositioning based on real fundamentals, not fantasy narratives pushed by financial media.
The Advantage of Systematic Alerts in Volatile Markets
Most traders are flying blind, checking charts manually and hoping they catch the big moves. Professional trading requires systematic monitoring across multiple timeframes and currency pairs simultaneously. When USD/JPY breaks below 101.50 support while AUD/USD rockets through 0.9200 resistance and EUR/GBP pushes toward monthly highs – all within the same two-hour window – manual chart watching becomes impossible. The key isn’t just having alerts; it’s having the right alerts calibrated to actual support/resistance levels that matter, not arbitrary round numbers that amateurs watch. Real breakouts happen at levels where institutional stops are clustered, and those levels are rarely the obvious ones plastered across retail trading forums. The 400 pips captured across six pairs wasn’t luck – it was the result of having systems in place to identify and act on genuine momentum shifts before the crowd even realizes what’s happening.
Understanding Cross-Currency Dynamics
The beauty of last night’s move wasn’t just the individual pair performance – it was how the crosses amplified the underlying dollar weakness. EUR/GBP pushing higher while both currencies gained against the dollar signals genuine European strength, not just dollar weakness. GBP/JPY’s explosion above 162.00 confirmed the risk-on sentiment that the headlines completely missed. When you see synchronized moves across correlated pairs like EUR/CHF breaking above 1.2250 while USD/CHF collapses through 0.9050, that’s institutional money flowing in size. Retail traders focus on single pairs in isolation, missing the bigger picture that cross-currency analysis provides. The Japanese yen’s broad weakness against commodity currencies like AUD and CAD wasn’t coincidental – it reflected real money flows from Japanese institutions diversifying ahead of further BOJ accommodation measures that are coming whether they admit it or not.
The Professional Trading Lifestyle Reality
This business demands sacrifices that most people aren’t prepared to make. While others sleep peacefully through eight-hour cycles, professional forex traders live in a world where the most significant moves often happen during off-hours, driven by news flow from different time zones or algorithmic execution during thin liquidity periods. The Sydney session fade, the London breakout, the New York reversal – these aren’t just academic concepts, they’re real patterns that generate real profits for those positioned correctly. But being positioned correctly means being available when opportunities present themselves, not when it’s convenient. The retail trading fantasy of “set and forget” strategies falls apart when you realize that genuine edge in this market comes from recognizing when market structure is shifting and having the flexibility to adapt positioning accordingly. Those 400 pips weren’t captured by traders checking charts once a day or following generic signals from subscription services. They were captured by recognizing that institutional order flow was overwhelming retail positioning at key technical levels, and having the infrastructure and lifestyle flexibility to act on that recognition immediately. The pullbacks will come, the re-entries will present themselves, but only for those prepared to engage with the market on its terms, not their own convenience.
read your tweet and entered Long GBP/USD , 70 pips in 1 hour not bad ,,
Cheers to you Kong ,,
It’s alot of work Farhan….as all these trades / across 6 pairs where already set “above” the current price action several hours ago.
So……with a plan ( mine was looking for further U.S weakness ) and orders “already waiting” on momentum – total rake was close to 400 pips across the board, as I’ve already taken profits.
Pulling teeth was how the Romans ‘extracted’ information from their prisoners…??
Apparently ‘the final leg of the great rotation’ – into the USD in 2014 – has again been placed on hold.
I’ve read a number of “creative interpretations” on the reoccuring dreams of teeth being removed / used / whatever….
These ideas go full circle from it being a “great thing” to the “dark n morbid” (like someone else could ever tell me anyway).
Let’s just get this 2013 over and done with already he he he…..like we can expect 2014 to be any better.
The saga continues.
ahhh what a night indeed – LOL for those it’s like Kong & I am sure others here just another day with little sleep…. I’ll rest later in life – but for now it’s business as usual….. I get most of my R&R on Sat & Sunday until early night…..About the teeth dreams there is meaning – I will get back too you…. I used to have these often myself – mine would all fall out but another set was there to replace…. again there is meaning….. touch-back with you later…
Cheers Schmederling
All insights welcome.
Cheers Schmed.