how to trade forex

Japanese Markets Crashing – Monday Comes More

Forex Kong 5 Comments

The Japanese Nikkei Index is down  nearly 3% ( -525 ) and it’s not even lunch time in Japan.

Care for a dynamite roll? Lol. Markets are imploding.

As suggested here countless times in the past…..just tune into to The Nikkei on Sunday nights for your early morning trade strategies there in the U.S. as it would be a very rare occasion that such destruction over seas doesn’t hit the shores of America come sunrise. When will you expand your circles of influence wide enough to truly get a grasp on this thing we call a “global economy”?

CNBC and the Wall St. Journal just won’t cut it girls.

I am making “sick money” long JPY since last week ( you could be too ……..but wait….the trade involved discussion/concepts of something “asian” so……its more than likely you “let nothing but patriotism stop you” ) – bleeeep! Red button. Some silly buzzer going off on some hilarious Japanese game show set – YOU LOSE Honky.

It’s a “global economy”! You seriously don’t believe it? How long can the television continue to guide you?

Now I’m not asking you to consider ducking out on your “trailer pad rental”, packing up Grandma and yer guns and moving to Canada ( at least Canada “admits” it’s in recession with back to back quarters of negative GDP growth now in the can ) – Juuuuust hoping to alert you to the stark realities of the current situation.

If you haven’t sold yet – you are not going to be the happiest camper moving forward.

Forex markets don’t give a rat’s ass about you, so if you can keep your eyes on the fundamentals and “not” on the tube. You’ll do fine.

Tomorrow morning the entire move with “have already happened” pre – market ( ya…actually it’s called Japan ) and the most likely scenario will see Western investors pile in short around 10:30 a.m thinking they’ve “scored a tip” here Sunday night.

Wall St. will then strip you clean ( ramping the thing into the late afternoon ) then sell hard into the close.

That…….or perhaps a fake alien invasion and an address from your leader.

I stand impartial ( this is my forex blog……..so you can imagine my thoughts on other “more interesting things” ) so take it with a grain of salt.

I trade to make money….I blog to help you.

Try your best not to get the lines crossed here k?

 

 

Forex_Kong_Wood

 

 

Potential Waterfall Action – USD and U.S Equities

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Don’t ask me why……..you already know why.

Fact of the matter is the big boys already sold all their long USD positions to “you” over the past 6 months. ( The move higher on bogus economic news – taking 6 full months to unwind and pass the bag to retail bagholders buying the hype. )

Equities? Common…….topped “months ago” and have been in “distribution phase” ever since.

Look out as this continued sideways action ( looking at the entire year of 2015 ) may have just shown its hand.

I’m long JPY against everything…..I’m short USD vs the Eur currencies…and I’m looking for waterfalls.

 

 

 

Forex_Kong_Face_Book

Forex_Kong_Face_Book

Open Your Mind – Aud/Jpy Is Next To Fall

Forex Kong 3 Comments

I sound like a broken record.

Simply put ( for the 10,000th time ) The Japanese Yen takes huge inflows when risk comes off…..and commodity related currencies such as The Australian Dollar sell off hard.

You’ve got the best of both ( no shit sunshine ) when trading the pair – AUD/JPY….taking advantage of large moves ( in opposite directions ) of BOTH currencies.

This is the kind of thing currency traders really look for.

Take a quick peak at AUD/JPY on a daily chart….and once again plot the beloved 200SMA.

See anything you like?

No brainer here “price wise” as this retracement in an obvious downtrend screams “sell”.

You have to keep in mind though……price and time are two different things. This is a great level to start thinking short the pair…….regardless of how long it bounces around at the 200.

Me? I’m getting under it with sell orders a full 100 pips below. If she screams higher ( doubtful ) then I’m not in the trade ( get it? ) – job well done.

When she falls…..I get picked up on momentum.

Eezy peezy.

You have to learn to let the market come to you…….stop chasing shit all over your screen.

 

 

Trend Break Established – Drop To Lower Time Frame

Forex Kong 4 Comments

Pull up $dxy ( dollar index )

Drop to a 1 hour time frame…..and plot the 200 SMA.

Let USD retrace ( move higher ) to touch the 200.

Mark this level.

Place a “limit sell order” 50 pips below said level with a stop a full 100 pips “above”.

Ride this trade for 11 days.

Ask me more.

Thank me later.

Do the exact opposite long EUR/USD.

Ask me more.

Thank me later.

Forex_Kong_Eyes_Real

 

 

 

 

Patience In Trading – Jedi Mind Tricks

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The ability to remain patient with your trading is arguably one of the most difficult skills to master when first getting started. You turn on your T.V, you hear the bullshit “hype”, you pull up your charts and you see the action , then something comes over you like a Jedi mind trick.

“Push the buy button Luke…..be apart of something…….change your life……..get rich…..buy…buy…buy”. As the Emperors spell works its magic on you.

The discipline needed to fight back, to remain “true to thyself”, to block out these evil messages and to remain patient is virtually impossible to exercise – short of many. many years out in the swamp practicing with Yoda.

Yoda_trading

Timing helps….but ultimately it’s patience that serves you best.

How can this be learned? ( Cuz believe me I can tell you…….it’s impossible to teach ) In a word……

Observation.

The market is full of opportunities each and every day…some bigger than others, but in all..there is never a need to “rush in”.  You can still call yourself a trader. Just a trader that has learned to exercise patience.

“Errr…trading you will do then……strong is the force with you.” ( In Yoda voice of course ).

USD Shorts obviously “massive” trade as of this moment.

USD Short – Luke And I Shift To The Darkside

Forex Kong 18 Comments

Stubborn as a mule…this kind of mindset can really get you in trouble.

If it wasn’t for the reasonable understanding of the “big picture” it would be very easy to just jump on the ‘long train” and passively assume the The U.S Dollar will continue to rise.

What’s also interesting to note is that no matter how much media hype, or how many days where risk is still “seemingly in the green” – world markets are still in the process of putting in a “lower high”.

After an entire month trading sideways The SP 500 as well DOW are still unable to make new highs, and are now “juuuuuuust on the edge” of tipping back to the dark side.

I hear rumors that Luke Skywalker slips over to the dark side in the new Star Wars film.

Sign of the times maybe. The timing looks right to me.

Wait For It…..Learn Something Numb Nuts

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Learn something here.

As a point of interest. Mark a couple of price levels on any given pair…….NOW.

Then…….sit out the bullshit / retail gong show volatility that will ensue this afternoon.

We will reconvene this afternoon/tomorrow morning  as you save yourself the grief of “guessing/hoping” you’ve traded the news correctly.

You won’t miss a thing….in fact you will “gain” as……..

You grow as a trader…..and let the market “tell you” which direction it’s headed all on it’s own.

“Then” you make your play.

Respect The Fed – Actually…Screw The Fed

Forex Kong 2 Comments

So we patiently wait for the Fed rate hike decision, and markets go nowhere.

Tomorrow we will finally get out of this seemingly endless grind sideways – going on nearly a full month now, when The U.S announces it’s decision on rates.

If you are “still” holding short USD and long JPY plays as I am – please be aware. The sudden reaction / volatility surrounding such a major news event demands “mucho respeto” ( much respect ). I anticipate large “sudden” moves in BOTH directions ( no shit sunshine! ) with plans to “add short risk” on any large-scale bounce.

The general lay of the land is just as well explained by Kathy Lien in the link below.

http://www.investing.com/analysis/trading-fomc-is-not-a-simple-binary-bet-265020

Ms. Lien is  so completely and totally boring it would be difficult to read much more than a single paragraph, but in this instance – she illustrates the possible outcomes “well”.

Any way you cut it, global markets will be down considerably into the middle / late October, so to be honest I could care less what happens tomorrow, but for those of you who are a little more “jumpy” than I – be very cautious with your trading prior to the announcement.

If you are out of the market then stay out…then look to pick off opportunities after the gong show.

USD looking prime for complete and total “cliff dive” – alongside “all things risky”.

 

 

 

 

 

 

 

 

 

Forex_Kong_Angry

China Evolves – You Hate Every Minute Of It

Forex Kong 2 Comments

I marvel at the “trade clowns” looking to pin this downturn on China.

Spoiled little brats, crying to their mommies because the big kid down the street took their ball away.

Infantile. Small minded. Dumb.

Blaming the Chinese…..like the 100’s of thousands of poor farmers there in China, who’ve only recently moved into the larger cities and started small food carts or trinket shops are somehow “responsible” for the decline.

Do you really think any of them are big buyers/seller in the stock markets anyway? Like they’ve got all kind of “extra cash” lying around after barely having enough to eat?

Oh wait…..it’s the government. That’s right. The Chinese government ( with planning so advanced and so “long-term” it would make your head spin) ) has done this to you. Sure….talk about calling the kettle black. How stupid can you be? Naaa….not there in the U.S no, no , no…….the stock market and currency aren’t manipulated there no no…..not at all. Gag.Puke.Hernia.Stroke.

Fact of the matter is – China ( if anyone ) is just fine. It’s the “global economy” that is grinding to a halt while China continues on with its plan. Slowing evolving from an export economy ( selling things to you ) to its very own “consumer economy” ( manufacturing and selling things to its own people ).

You just don’t like it because you are afraid of it.

For what it’s worth……half the planet could drop off into the oceans overnight – and China would just keep on rolling.

The Chinese don’t need you.

You hate knowing that.