MARKET UPDATE 1 mONDAY jUNE 6 @ 5:30 AM EST

TRADE JOURNAL

Sun JUNE 5 2011

9:00 p.m. EST-- The yen is weak across the board right now.  Normally I don't trade on Sunday but, I'm looking to see how aggressive the market makers are.Also, this is the first day I'm actually trading the account seriously.  Till now I've just been trying to get in the required 31 trades as fast as possible without Tearing the stats down on the account. As mentioned earlier in the journal. I'm starting off with a few LCM home run trades.The signals were 4 short trades in the gbpjpy, eurjpy, chfjpy, and audjpy. The market reacted to the orders as usual with an immediate pullback against the positions. Even though I sometimes place my hard stops at a negative profit to loss ratio that is only for show like poker. I will be watching for my mental stops which are true profit to loss ratio. I often exit early before the posted stop or target is hit.  This is to keep the broker program trading robots from zeroing in on a trading pattern.  Let's see what happens.

Note: The trades were entered 10-15 pips late. Since its Sunday night I'm at my home office and after 20 years my family and friends still do not consider what I do as work even though they complain that I live at the computer. They still think I'm playing or something and will interrupt me for the damnedest things where they would not dare think of interrupting me when I'm doing physical labor. So, I know what most traders go through just to trade in peace. It no longer angers me because it has taught me the truth about the mental dumbing down of the human population. It can't possibly be work unless you're doing it somewhere else for someone else.


4:00 am Close gbpjpy and eurjpy a couple of pips from target. they closed a couple of pips from daily open support which is support until a close below it. Exited audjpy by accident and reentered. It's 4:00 am and I'm tired but trading is work.  Also exited chfjpy. Too early it looks but the hour closed with a high volume inside bar so I stuck to the early exit rules on this one. The bar had higher volume and thus, needed to close lower than prior bar. It also did not close below the 20 avg so I needed to see a break below the 20. It did so immediately at the open of the hour and rushed down to the daily open target. No chance to reenter like audjpy which I would have loved to do.

4:24 am  Closed audjpy @ daily open for another. 4 out of 5 so far today. Not going for bi pips yet though.  The week is just starting and I'm looking to take what the market is showing it's willing to give at the moment. The jpy is weak across the board and I will look to jpy some more if hour closes below daily open. 15-20 pips profit may not seem like much but, when you average about 10 trades per day that's a potential 150-200 pips per day. But the main point is to try and keep your average risk to around that amount also and you have staying power Right now I'm trading off the 1hr and that is the average range of a 1 hr bar. I trade all time frames whenever I see an opportunity. The longer the time frame the larger the target and stop/risk.

4:40 am - Right now I'm glad I stuck to the LCM principles and got out at first support because all of the pars I was in are bouncing back up hard off the daily open/s.This is what I mean when I say, "Take what the market is willing to give. The currency market in general is bouncing back up off the daily open/s."

5:00 The chfjpy - I made a mistake by not jumping back in but hindsight is 20-20. My mistake was in misjudging the opening range by not considering that the closing range bar from Friday is the opening range bar because the opening range bar for today was an inside bar that closed within it. Forgetting to look at inside bars is one of my most common mistakes. But this pair has exploded through both and I missed the ride. I am always amazed how often I can have say, 5-8 trades open and  it's the one I'm not in that blows up and I miss the pair with the biggest move. I don't know if that is a result of my conservatism or that's just how tight the operator beast computers have the program trading algorithms down. For most of the pairs the opening range held and that means it's time for a reversal to test last hour's move.

5:05 am  It's time for me to take a break till the u.s. session.  Tired minds make mistakes. Currently up 28.7 pips on 5 1hr chart trades.for the day. bUT THE MAIN THING IS THAT
i'M SATISFIED WITH MY RISK MANAGEMENT THUS FAR. aLL OF MY TRADES WERE SHORTS AND MY OBJDECTIVE WHEN GOING SHORT IS TO GO SHORT AS CLOSE TO THE HIGH OF THE DAY AS POSSIBLE.

NOTE: WHILE i CANNOT PREDICT THE HIGH OR LOW OF THE DAY IN ADVANCE, I CAN USUALLY SPOT IT WHEN IT HAS OCCURED A HIGH PERCENTAGE OF THE TIME..  THE HIGH OR LOW FOR THE DAY MAY CHANGE FROM HERE BUT i MEAN DURING THE TIME i'M ACTUALLY TRADING.

For those who ask me what is the differenc between my books and my 1 on 1 course, if you read my logs it should be obvious. There are levels of details that cannot
be in a book or a book will be thousands of pages. My books teach you a couple of techniques and concepts.  The basics. It's like playing sports. You can go to the coach and
get the playbook and never talk to the coach again. That means you learn the plays.  But learning the plays is the basics that prepare you to learn...

HOW...TO...PLAY...THE...GAME...  Or as Morpheous told Neo in the Matrix movie...It's a big difference between knowing the path, and walking the path. After studying
my books you will know the path.  After taking my course you will know how to walk the path...

MARKET UPDATE 2 11:00 A.M.

Well, since I woke up at 4 am est this morning I have not been impressed by price action at all. As far as the 1 hr chart, we got a 30 minute quick pop off the gbp news and it's been slow motion since.

Banks are the market makers than move currencies. Most of them are off today ( eurozone ). That's the trade off with market makers. They are needed because without them there is no liquidity in the market and we get markets caught in a tight range that's un-tradeable because of no sustained direction.  The flip side is that they set up retail traders who don't understand the game.

The hardest thing for any trader is not to trade for a whole day. But I think most traders know when to trade but, very few know when not to.

The u.s. data has not put any real energy into the markets. Markets are ticking like a slow clock. Squeezing blood.  Why look to force a trade.  I could but I just don't see it on a risk reward basis.

Gives me a chance to get some work done for students though.

Cheers, Jerry

jerry@forextradingmajic.com

jerryjstew@yahoo.com

MARKET UPDATE JUNE 2 2011 @ 6:00 AM EST

First I want to thank my 1 on 1 students for your helpful comments regarding the new money management information I've added to the course.  I like to tailor my work to fit the needs of my students and your comments and suggestions are always most helpful.  From what I'm getting so far I feel it's going to make a big difference in bottom line profit and loss.

That being said, it's still not complete in the way that I would like it but I've rushed the mirror trading info out a couple of days sooner than I planned and so it's not quite tightened up the way I like and I have to put together

the video information on how to best use the zulutrade service in conjuction with Lcm.  Trying to trade and put together materials is very hard. I like to be engaged with one or the other and not both.  However, a few of my peeps were getting impatient, what, with me being gone for a couple of weeks dealing with my parents situation, left them feeling abandoned.  So, here I am rushing stuff together for you.  Now that the cat is out of the bag I hope you understand that I have a certain standard on how I present my materials so I will be tightening things up for you but it's a process.  So, don't bust my balls until next week...lol.

In the meantime check out the trade journal below.  I'm finding that very few of my traders keep a trade journal.  I can tell you that most successful traders keep some type of journal. Whenever I look back and review my journals I am always impressed with how stupid I can be at times...lol

TRADE JORNAL

WED JUNE 1 2011

4:30 am  Just waking up to watch the first high impact news of the day for gbp construction PMI. News was sightly better than expected. The gbp got a little pop on the
1hr charts to create a couple of 1hr pivot signals. I don't know if I want to take the signals though in the gbpjpy and gbpusd bullish pivot reversals for a couple of
reasons. 1. The euro zone banks are closed today so I'm wondering if the markets will have enough juice to follow through on signals.  1. Markets are waiting for all
important u.s. employment data at 8:30 am, which is the only true market mover I see on the news calander for today. 3. Euro zone bank president speaks in 45 minutes
and this is often used to create false moves in the markets as the heads talk up or down a/the pairs because traders follow the herd. 4. volitility stoped immediately
after the news pop and volitility came to a sudden halt. I don't like sudden halts, especially when price has strong momentum in one direction. It's unnatural and
I don't have to know what it is, I only need to know something aint right. 5. All moves right now are intraday counter trend.

As far as the news, I am alway impressed on how obvious the manipulations are to those who take off the rose colored glasses.  The euro zone banks are closed so there
is a lot less capital out there today supporting the euro. So, to make up for that, they send out their talking head to protect the euro with words that will spook
traders in the desired direction in place of the banks manipulating price.

5:23 am  Markets died after gbp news pop.  The 1hr bull pivots on the gbp are too far away for an unplugged entry so I will have to wait for a pullback.  When the pivot
reversal bar is too far from the pivot point the risk is too great to enter on the break of the high of the reversal bar. After the pullback maybe but, only if the
markets are lively.

5:30 am  Nothings moving but the head of the euro bank president just as I suspected.


5:30 am  No volitility means no trades. especially no short trades when no volitility.  There is an old saying in the markets that says. 'NEVER SHORT A QUIT MARKET:
I used to buck that saying in my younger days, trying to prove that wrong.  Trust me.  It ain't wrong.

5:35 am No volitility give me a chance to study the markets to see how price action is working.  The mechanics of price action I mean.  The audusd is an interesting
study.  Looks like it's been moving but it's trapped within a range.  A lot of shake and bake but now real move.

5:40 am  Looking at the 4hr signals on all the pairs.  couple of decent signals especially on gbp but they need pullbacks. When the signal bar closes more that 20 pips
beyound support/resistance I like to lower the risk and wait for the pullback first.  I notice that often times it's a trap. More times than not.

5:45 am  I'm noticing that my journal times are very close together.  That tells me I have too much time on my hands to study the market instead of looking for trading
opportunities.  A hint for me to wait for 8:30 am for the u.s. data.  u.s. banks are open and it's looking like that time period will be the best chance to ride
some volitility.  Volitility is the waves that traders surf upon.  If there are no waves we can't surf.  We can try of course but, still waters make us shark bait.

6:00 am Nothing compeling is going on so I will break until around 8:00 am to get ready for the u.s. data.  I feel that the market makers will do their usual thing
before major news and set prices up right at support or resistance levels to provide maximum volitility potential on the breaks and reversals.

FOREXTRADINGMAJIC.ZULUTRADE.COM

HTTP://WWW.FOREXTRADINGMAJIC.ZULUTRADE.COM

Whenever I'm quiet it means I've been working on something important for traders. Read this post for details of what Jerry's been setting up.

Go to the link above and sign up for a free demo account. You must sign up from this link in order to receive the resources that I provide with Lcm.  My zulutrade name is ( trading majic ) add me as your service provider.  The website will explain the details.

This will allow my trades to be mirrored in your account.  But the Lcm money management system is the key. 

Money management is the key to profits.  A trading system is the key to making good trades, but your money management system is the key to actually being profitable in this business.

A good money management system is an entire course by itself. 

Below is today's trading journal from the London session this morning.

Note: The money management system comes with a purchase of one of my Lcm products. The mirrored trades are free when you sign up for a zulutrade account through the link I provided.

TRADE JORNAL

WED JUNE 1 2011

GBP/CHF
3:05 AM gbpchf - Long on bullish reversal bar...  1.4060 and 1.4037 but news came out at 3:13 am EXTREMELY bullish RETAIL SALES data for chf. moved stops below days
low bur will most likely be taken out on strong move off news. CHF DATA MUCH BETTER THAN MARKET EXPECTATIONS.

3:30 AM sTOPPED OUT AT 1.400.  Market hit 1.403 but spread widened to 6 pips to take out stop.

NOTE: Made mistake of not looking at the 4hr.  would have seen that volume was low previous 3 4hr bars and price up against 20 avg and last bar was inside bar.
__________________________________________________________________________________________

gbp/usd

3:30 am lomg gbpusd.  1HR UNPLUGGED BULL PIVOT... @1.6481 soft stop and tp for now... 3:40 am set tp @1.6508 previous week high.
3:50 AM  EXIT ON 5 MIN REVERSAL. LOOK TO REENTER OFF 5 MIN PULLBACK.
______________________________________________________________________________________________
4:14 am long 1hr bull pivot. unplugged entry break above bull reversal bar. 1.6496...  Also pending order to enter on pullback to pivot point @1.6473.
NOTE: PIVOT IS ON LOWER VOLUME BUT OPERATOR PARTISIPATION.


wanted to enter limit on unplugged entry but got message below from zulu.


New trade message on 2011/06/01 08:08:00 : Did not Open trade for 1.0 lot from Manual BUY GBP/USD, reason: Invalid rate. Broker Message: Invalid rate value:
Provided rate 1.6494 is less than 8 pips away from current rate 1.64906

4:22 AM  Market quiet waiting for gbp news at 4:30 am... If news is bad for gbp we may have to early exit. Can't control the news.  News changes everything
instantly.

NOTE: I hate it when news comes right after a perfect setup because news is the one thing that trumps everything.

4:30 am news came out with immediate spike against gbp.  stoped out immediately. Gave no chance to stop and reverse to short.
Glad I'm scaling in with micro lots on a $10,000 account.

I look to exit and reverse directions on news against my position but today was extreme spikes that gave no chance.  That's by design of course.

NOTE: THE OTHER PAIRS ARE QUIET. WHEN TRADING, FOCUS ON THE PAIR THAT HAS NEWS PENDING...
_________________________________________________________________________________________________________________________

SPECIAL NOTES:

Down 159 pips on 5 trades. Starting account balance $10,000.  Now down to $9,984.  Down $159.00
instead of $159 So, we can see how our money management plan helps us here.  If were are trading $10 per pip standard contract instead of $1 mini per pip we would
be down $1590.00 (15.9%) instead of only $159.00 (1.6%). This is why the use of my money management plan that I provide is so important. The trades are based on my
mm plan so, when I take additional risk, like today trading the news, it's accounted for in the plan and if I lose there is little pain.

This is why I spent so much time stressing money management in the videos. My traders need to understand what I'm doing in order to follow me. On the zulu site
you will see many impressive looking stats but when you look at the numbers deeper, the drawdowns these signal providers generate are not realistic unless you
have a $100,000 account.

The zulu trade platform only allows for standard lot sizes.  That means I can't break them up the way I can in actual trading. The account settings in my signal
provider account are different from my actual trading account. I have a $10,000 trading account linked to my signal provider (SP) account. So, the stats posted by
zulu will not necessarily be a true reflection of what I am actually doing in my trading.  The purpose of Zulu is to get you the signals. BUT IT IS THE MONEY
MANAGEMENT SETTING THAT ARE GOING TO MAKE THE DIFFERENCE IN REAL DOLLARS.

EXAMPLE: Using today as an example, most everyone with 10,000 are trading standard lots at $10 per pip, and this is the only parameters that zulu can display
$10. per pip. In real trading we are using mini lots $1 per pip.  We want to trade micro lots .1 per pip until we have at least $2,500 in equity.

SUMMARY:

AT 5:20 am I'm down only 1.6% .  With 98.4% of my account still remaining, I have no fear of taking additional trades as they present themselves. But the zulu stats
will look quite different. My objective is not to get as many followers on zulu as I can.  My objective is to train my Lcm people properly.

That being said, today's trades were technically off system for Lcm because I should have waited until after the news before trading but, sometimes I will take a
high risk shot as long as I can keep my risk around 3%. Or like today 1.6%.

5:30 am Tired now, need a nap before the u.s. employment data comes out at 8:30 a.m when I will focus on the u.s. pairs.

Cheers, Jerry

JERRY@FOREXTRADINGMAJIC.COM

JERRYJSTEW@YAHOO.COM