5 June 09

Hi All,

A check on the 4 currency pairs shows that the market is moving in a range. This is most likely due to the coming release of news at the following times -

3:05 PM CHF
4:30 PM GBP
8:30 PM USD - Non Farm Payroll

Those that are in the money i.e in the profit, please square off half of your position to protect your capital investment and ride the market movement. For those who are not in the trade, please stay away. For those who are not in the money, please square off your position to cut your loss.

Remember to trade with a plan. Set realistic profit target. Cut your loss when necessary.

EURUSD Scalp and News later this evening

Dear graudates,

there are a couple of important news announcements scheduled tonight such as the announcements by BOE and ECB and the Fed Chairman tonight along with the Non-farm unemployment change on Friday. Please bear these in mind and be mindful when trading.

Attached above is a trade initated after a bearish breakout for the EURUSD and the trade will be expected to be kept open during the news release.

For trades that are not in the money, do remember to square the position before any major news. For those who did not manage to catch the breakout, PLEASE do not chase the market.


Regards
Siwei.

EURUSD Scalp on 3 June 2009

Dear graduates,

Today there was a successful scalp in the EURUSD during the afternoon session.

Criteria to enter this scalp are listed below to help understand how the trade was identified.

1) there was previously a uptrend and the 12 noon hourly candle formed higher and traded near the 1.4329. The 1pm candle first traded lower then the low of the previous candle before trading higher. It would not be possible for the 1pm candle to settle as a bigger upclose candle hence increasing the seller's advantage.

2) A quick calculation identified the previous movement of 27 pips is likely to be repeated again in this hour. This allowed for limited seller's risk and thus initated the trade.

3) Entry was made at 1.4219 with stop loss at 1.4229 and target profit level was at 1.4200. This trade's risk reward ratio was 1:2.

4)From the daily homework, having identified the expected news releases and potential market direction to be a upclose day, it would be wiser to close the short position and be on the right side of the market.

Regards,

Siwei.

EUR USD 2/6/2009

Last night, there was a good trade for EUR USD before 8PM. There was a strong support at 1.4200. On the hourly chart, overtaking criteria was valid as it was a continuation. 5 minutes chart was brought up for precise entry. A trade was engaged at around 1.4217 and the trade was closed off at around 1.4277. Stop loss was at around 1.4200, risking 17 pips for a potential reward of 60 pips. Risk Reward Ratio - 1: 3.5

USDJPY 1 June 2009 Follow through

Dear all,

with the Whit holiday in the French, German and Switzerland market today, please remember to stay out of these markets due to irregular market volatility and thin trading volumes. Do remember to check the calendar on a daily basis to be aware of the news.

Tonight, we have the US ISM Non-Manufacturing coming out at 10pm, the BOE and ECB scheduled to announce maintaining the interest rate on Thursday and Friday's Non-farm payroll.

Be aware of possible market build up in the market movments in relation to the expected news released.

Meanwhile, USDJPY continued its bearish follow through of 95 pips after friday's big downclose. Congrats to all who managed to catch this market movement.

Regards

Siwei