FXing Again

The big Jobs numbers from the U.S. was surely going to keep the stock markets quiet ahead of the numbers, although after number action was expected. So Kiki and I headed for the Euro FX charts. The new monitor was due to arrive yesterday but because of the snow in the U.K. it didn't and as of writing this at just after 17.00 there is still no sign of it despite a complaint to the online store. The idea is to have the ES or DowEuro50 on one monitor, the Euro FX on another and the Bund on the third. I run off an 18 1/2 inch laptop and there will be two 24 inch monitors when the second one arrives.

Anyway, the choice of the Euro FX future to trade was a good one. There was plenty of action, almost too much. We finished early but still managed to notch up a dozen trades, 11 winners and 1 loser. By now, you can see that this stuff is not too complicated although developing all the nuances to stay out of trouble takes a bit of time to develop.

There are two charts today: the morning pre-announcement and the post announcement after 13:30 London time. The numbers were a non event so we decided to stay with the Euro FX in the afternoon too, especially after the good morning we had.

I must admit I am not as comfortable with the Euro yet as I'd like to be. The thinner volume makes it different to trade and I am still relearning its fingerprint. We stuck with our strategy of all in and all out as I both don't have a feel for the exits and I have not worked out how to better use the Profile with it. Taking a pragmatic approach of taking the surest juice out of it seems to be working, so if you are a 1 lot trader and have passed your tests SIM trading (see my criteria early in the blog) then perhaps this is a market you can look at.

Today's trades earned more than 100 ticks/contract without too much heat in any of the trades. Those of you who still have a day job might look to trading it both in SIM and, when successful, live in the hours outside your working hours. Its a true 24 hour market. If you want to trade really small then you could trade the FX market using the Euro FX future for your charting so you have the volume info. The arb between the cash and futures is very efficient, I'm told.

Morning trades Above, Afternoon below

Click to enlarge

Again, a reminder to register for the January 16 webinar. You can find the link under the Key Posts at the right hand side of the blog. I should have the agenda posted on Sunday so check in if you are interested.