Thursday Forex Trade Update – Re Load

Once I get my signal for entry, and then begin to “actively trade” a given currency pair on the smaller time frames – things really start moving.

I’ve already taken profits on the entire group of trades entered Monday, then “re loaded” several pairs with smaller orders through yesterday and last night, with a couple of really big moves being seen – in particular the Australian Dollar ( didn’t I tell you that days ago?? ).

A quick update on activity here on Thursday as quite simply – I am sticking with the same pairs (more or less) and after a couple of days “chopping around” look to scale into re entries “across the board”.

Often what I’ll do in cases like this, when we’ve nailed the original entry so well – is take a “portion of profits” already taken – and treat the “re entries” as “bonuses”. Taking 6% in a matter of 48 hours, with next to no market exposure allows me to “mentally” approach the next trades a little differently.

I knock the Kongdicator down to the smaller time frames, and more or less just do the same thing over again as…..I’ve already got the confidence that we’ve nailed a change in trend / direction – now it’s really about “getting back in there” at the very best points that I can.

I hope you’ve been following along, and from what I understand from some of my regular readers…it sounds like several of you are making some money too!

USD has taken a little break, and several pairs present “decent shots” at re-entry here this morning. AUD has been punished hard, but I’m confident it still has further to fall as NZD also looks to be fading. JPY has certainly been stubborn but my feelings about it have not changed.

We are literally….soooooo close to a larger scale correction  – you can practically smell it.

4 Responses

  1. Franky January 16, 2014 / 9:23 am

    I hope you’re right about JPY…still waiting..
    What do you think about AUD/NZD? …making multi-year low, looks like good buying opportunity, I’m just affraid to go long AUD, maybe not the time yet…

    • Forex Kong January 16, 2014 / 9:27 am

      The pair has fallen to a pretty serious level of support ( pull a monthly chart please ) so a little caution at this level.

      I wouldn’t be getting long AUD against anything at the moment so that , coupled with “both these currencies” currently falling / risk coming off.

      I could think of some far more “justifiable trades/pairs”.

  2. Anonymous January 16, 2014 / 4:48 pm

    I enjoy the blog. Reading a fellow traders thoughts are interesting especially from someone who clearly gets it. I am unable to write my thoughts due to my job. I will leave it at that. The option trader in mean has looked at mean reversion with correlated pairs. It seems like uncharted waters for most. Have you ever explored this at all?

    • Forex Kong January 16, 2014 / 5:01 pm

      Mean reversion is a very simple principal as “price will always look to revert to the mean” at some point.

      The trouble is ” as a strategy ” no one can estimate the “time it will take” for price to come back to an average.

      Trading options successfully is “all about timing” as the option will lose value over time “no matter what price does”.

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