Colt FX Late Edition November 10th
Colt FX Late edition Monday November 10th 2008
In this week’s issue:
Forex Review November 3rd to 7th
Monday November 10th Update
Forecast, November 10th to 14th
A day in the life of a Colt FX trader…
Sammy’s calls: Week 4 round up
Live trading session: Wednesday November 12th
Colt on candles
New prices for Colt FX Total
Forex Review November 3rd to 7th
Recession rumbles on…
The week didn’t see much change on the currency market with the global recession spelling the same problems for all the major economies. Only Sterling saw significant falls after the Bank of England slashed interest rates a mammoth 1.5%.…Forex Focus
Calendar November 10th to 14th
For an extensive list of the week’s economic releases and events see our economic calendar.
Monday November 10th News round-up
The week opened on an upbeat note when China lived up to the G20 promise yesterday to bolster growth by announcing a $586B stimulus package. The Asian markets loved this and soared in response with the Nikkei rising 5.81%. The currency markets tracked the equities markets, as they have been doing recently, with the rise in equity prices seeing the US dollar strengthen against the yen and weaken against the euro and the pound. European markets rose initially and although London’s FTSE closed up, enthusiasm had dampened as the session progressed. Recession-fuelled fear continued into the New York session and stocks fell on forecasts of worse than expected Q4 earnings for companies as diverse as Goldman Sachs and Google. EUR/USD started the week by gapping up 30 pips and went on to rise to 1.2920. It fell from this level at around 14:00 GMT and is currently testing support at 1.2750.
GBP/USD gapped up on the open some 100 pips and hit a high of 1.5880 at 02:00 GMT. The pair has been falling since and is testing 1.56 as I write.
USD/JPY gapped up around 80 pips at the open, hit a high of 99.46 before starting to fall at around 11:00 GMT. The pair is currently finding support at around 97.50.
Forecast November 10th to 14th
We are dollar bulls in Europe this week.
EUR/USD should find resistance at 1.31 and support at 1.25. A daily close below 1.25 will set a new target of 1.23.
GBP/USD will meet resistance at 1.61, with support coming at 1.52
USD/JPY will encounter resistance at 100.50 and support at 95.50
A day in the life of a Colt FX trader
Here is a genuine account from Deborah B, a trader who uses the Colt FX system to support herself and her family.
I have been trading coltfx in a real account since April of 2008 when I found myself laid off and having a very difficult time finding a job. My previous employment was as an underwriter so I am used for working by the book so I basically follow the rules of coltfx without much deviation, and that has served me well. I concentrate on the GBP/USD, and the EUR/USD as my main pairs and the USD/JPY, USD/CHF as secondary pairs.
I start my trading day at 4:00am Mountain time and from 4 to 4:50 I prepare for the trading day. I pull up my charts, I open my excel spreadsheet that calculates the coltfx signals, I read my actionfx email that gives me a summary of what is going on in the markets and I look at the fundamental announcements for the day. I like to use the dailyfx calendar because it lists all the announcements, rates their importance and it also provides commentary about the announcement. I like to identify when major announcements occur because I will not open a position in an affected currency pair on the hour of the announcement.
I start my trading day at 4:00am Mountain time and from 4 to 4:50 I prepare for the trading day. I pull up my charts, I open my excel spreadsheet that calculates the coltfx signals, I read my actionfx email that gives me a summary of what is going on in the markets and I look at the fundamental announcements for the day. I like to use the dailyfx calendar because it lists all the announcements, rates their importance and it also provides commentary about the announcement. I like to identify when major announcements occur because I will not open a position in an affected currency pair on the hour of the announcement.
From 4:50-5:10am I perform the colt analysis on my main pairs which are the GBP/USD and the EUR/USD. If the pair has hit a sticky level, the 100 point rule, there is no bounce off, or my stop would be greater than 35 points I will move to the secondary pairs and do the analysis on them also. If I get a signal to enter the market, I set the stop and limit and go do something else until the beginning of the next hour. I continue the cycle of analysis for the last ten minutes and the first ten minutes of every hour until 12:00pm. If I have open positions, I review the stops at the end of each hour also. From 12 to 1pm I review my trades, make notes of what when right and what went wrong. If I still have open positions, I review the stops and the trading day is over.
Most of the trades are good, I don't get stopped out very often but it does happen. I am able to support myself and my family which is what matters to me the most. The best part is I am actually making better money now than before I got laid off. The downfall for me would be feeling isolated sometimes. My favorite things about colt are that it includes money managment and you follow the signals and walk away from it. Its easy to be emotional about trading especially when you are trading for real money. Its still a bummer when I get stopped out but I earn more than I lose. I find that the more I use coltfx the better I get at using it.
Sometimes I use the time between trades to learn more about the markets or look at different strategies. Sometimes I just go do something completely unrelated like clean a room in my house, take a walk, or watch a cartoon. Its nice to have control of my time.
Most of the trades are good, I don't get stopped out very often but it does happen. I am able to support myself and my family which is what matters to me the most. The best part is I am actually making better money now than before I got laid off. The downfall for me would be feeling isolated sometimes. My favorite things about colt are that it includes money managment and you follow the signals and walk away from it. Its easy to be emotional about trading especially when you are trading for real money. Its still a bummer when I get stopped out but I earn more than I lose. I find that the more I use coltfx the better I get at using it.
Sometimes I use the time between trades to learn more about the markets or look at different strategies. Sometimes I just go do something completely unrelated like clean a room in my house, take a walk, or watch a cartoon. Its nice to have control of my time.
Sammy’s Calls
Last week was the last in my series of calls and I’d say I went out with a bang. I had been $566.64 up but last week’s calls took a fair chunk of that:
Last week was the last in my series of calls and I’d say I went out with a bang. I had been $566.64 up but last week’s calls took a fair chunk of that:
1. USD/JPY, I am hoping to buy at 98.10, S/L 96.70, target 102.00. Closed at end of week +$23.18 up
2. GBP/USD, I’m selling at 1.5970, S/L 1.6140, target 1.5480. LOSER: -$172
3. EUR/USD, Trying to run after this one (never a good idea) but here goes. I’m selling at 1.2750, S/L 1.2870, target 1.2300.
LOSER: $120
Leaves me with $297.82 to the good, which is not too bad I suppose. Anyhow, Dennis has got another guy coming in next week who plays a more conservative game. I’ll be watching to see how he measures up against my play.
Thanks for reading.
All the best, Sammy.
Live Trading Sessions
The next session will be on November 12th at 15:30 to 17:30 GMT. We will be trading the Colt FX pairs; and the Jam FX system and taking a look at what is happening on the charts.
If you’d like to join in, write to me at colt@coltfx.com.
Colt on candles A blog which aims to test the effectiveness of Japanese candlestick analysis.
Forex Club’s Platinum Package
Forex Club is offering the Colt FX distance learning course as part of their package of incentives to open a Platinum account. You can learn more about the details of this offer at http://www.fxclub.com/platinum/. You can find out more about Colt FX in our short film What is Colt FX?
Forex Club is offering the Colt FX distance learning course as part of their package of incentives to open a Platinum account. You can learn more about the details of this offer at http://www.fxclub.com/platinum/. You can find out more about Colt FX in our short film What is Colt FX?
If you have any questions about this newsletter or any of our services, please drop me a line at colt@coltfx.com.
Disclaimer
www.coltfx.com, and any of its affiliates, will not be held responsible for the reliability or accuracy of the information available in this newsletter. The content provided is put forward in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Colt FX or its affiliates. The reader agrees not to hold Colt FX or any of its affiliates, liable for decisions that are based on information in this newsletter. We highly recommend that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.
www.coltfx.com, and any of its affiliates, will not be held responsible for the reliability or accuracy of the information available in this newsletter. The content provided is put forward in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Colt FX or its affiliates. The reader agrees not to hold Colt FX or any of its affiliates, liable for decisions that are based on information in this newsletter. We highly recommend that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.
10 November | 
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