In this week’s video, I will discuss the possibilities of making $400 an hour trading the markets. I will also cover a few currencies that could be in play. The first currency pair I will be discussing will be the Gbp/Usd. This pair is near support and a swing low that has held since October. I do not like to see levels testing too many times as I have found in the past the more times a currency pair test a level, the more likely that level will be broken.
The second pair I want to look at is the Gbp/Jpy this pair has been forming a triangle that is likely about to break. The most important thing for us traders will be to wait for the break then look for a retest. A good case can be made that this pair will break lower, but a good case can be made that the break will be higher and that the pair will test the highs from December.
As many of you may know FXCM is no longer able to operate in the U.S. and my Forex account was transferred to another broker. I have only placed one trade with this broker so far as I am not happy with the spreads, but it seems that U.S. clients do not have many options. The pip spreads have caused me to pause for the moment not because I feel that I can not be profitable, but because I know inside that my head is still being a bit of a cry baby.
So over that past few weeks, I have been studying the futures market. I like what I am seeing so far, so I have opened a small live account to start testing. This week I was able to average over $400 an hour trading. The bad news is my total time in a trade was less than one hour. If I could only do this for let’s say 40 hours per week, I would be in great shape. I posted my trades below.
I know most of you will look at the win/loss ratio and be amazed. I’m not worried about that stat so much at this time. The key number I will be working on this week will be the average win and average loss per trade. I need to stay discipline like when I trade the spot Forex market and then this number will increase.
It’s been quite some time since I have traded with such a small account size. To be honest, I find this a bit more stressful at this point in my challenge. My challenge is to grow my small futures account without taking too much risk. One the great benefits that I have found trading futures is the time of day. Most of my trades were placed in the 1st hour of trading. below is a breakdown of those trades.