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

update 1

Hello

I've been getting emails asking when I will be back.  I have been back since 5-11-2011. 

I have not been able to post on this blog since my return due to technical issues that Blogspot has been having.  I have probably made 50-100 posts on twitter in the last 10 days.  

Hopefully, their problems are resolved and I can start posting again on this blog.

Cheers, Jerry

BACK AT MY DESK

Hello

I am back at my desk after a couple of weeks away due to the death of my mother in law, and major surgeries to both my mother and father whom live in a different state than I do.  My mother has serious complications and the situation is still up in the air.  I'm sad but..well, you know we have to keep going somehow.

For all of you who sent me words of encouragement you really have my thanks. It is because of you that I decided to continue Forextradingmajic.com.  You see, I do quite a bit of pro bono work that takes up 30% of what I do.  For me, it is my way of tithing.  If you are any kind of student of human nature you know that when you do a lot for people for free, they don't give it the value or respect that it deserves.  They get to the point where they feel you are obligated to serve your time and hard work for free.  I think it may be a good thing to have been away so some of you can see the difference between me and whatever else is out there.The difference is that, Jerry has genuine Love for the people...the little people who are taken advantage of in this business.

My first reactions are to just close up shop but, those of you I did hear from softened my heart and therefore I will continue with the grace of God.

I will resume blog updates and twitter trade alerts tomorrow May 12 2011.

Cheers and One Love

Jerry

UPDAT 1

Hello

My mother had major surgery yesterday.  I'm still around but I can only come in short messages right now.   It's been a rough couple of weeks and all I can do is pray.

Jerry

UPDATE 1

Hello

Let me say first that some of you seem to have forgotten what I told you.  My mother inlaw died, my elderly father had surgery, my mother is due for major surgery, my computer had a virus that destroyed many of my files.  

So, let me ask you, what would you do if you told someone this and they said wow, that's too bad, but I need you to do this and I need you to do that?  Do you really believe I can operate normally under those circumstances.  How about if I did what any normal person would do in this situation and close up shop for a couple of weeks.  How about if you can't contact me for a couple of weeks!!!

THE LOVE OF MONEY TRULY IS THE ROOT OF ALL EVIL!!!

Kind of remind me of my football days.  I remember a game where I played on torn ligaments in my ankle.  The doctors said don't play but I played anyway.  That game, I threw 3 touchdown passes, threw for two 2 point conversions and ran for one 2 point conversion, and had an interception that I ran back for 80 yards.

All on an ankle 3 times normal size.

But we lost that game when my desperation hail Mary pass was intercepted on the last play of the game...

Behold, I had people all over me saying it was my fault that we lost the game.  I threw an interception to end the game...I learned a lot about the world that day and like a wise man once told me.  "The mind of mind hasn't changed since time began."

So, listen. I had a funeral to attend, and 2 sick parents who live 2 hours away that I have to attend to over the last few days.  I would have hoped that many could understand the situation but the fact that I feel compelled to write this speaks volumes.

So here is what's up. I've been playing hurt for the last 2 weeks.  I ain't play'in hurt this time. 

MARKET UPDATE 1

TWITTER TRADE ALERTS

Hopefully, by now you know enough to scan you forex news calender before each trading day.  As I stated yesterday we had a G7 Meeting all day and today we have a G-20 meeting through the weekend.  Refer to my post yesterday if you have question of what a  G- meeting is.

 G-7 or G-20 the only difference is the number of nations participating.

For that reason I am keeping the load light but the bigger reason is that when I look at my 4 hr chart I see consolidations and it remains to be seen if we will have breakouts of the ranges that have been established over the last couple of days.  The eurusd broke out but that move was not tradeable unless you wanted to take a big risk by taking a position before or on the news.

We are still with our remaining 3 positions from yesterday and I have seen nothing compelling to induce me to carry a heavier load.  G- meetings mean indecision and indecision means markets bouncing off of support and resistance levels.

Also, it is particularly not a good idea to hold positions over the weekend of a G- meeting because you don't know who they will decide to push up or push down per their agreements at the meetings.  So, again, I know that signals and sup/res, sup/dem, etc... are all important.  But, we still need a basic understanding of the meaning of geopolitical events as news moves the markets.  False moves in the markets caused by large interests are the rule and not the exception.  

Inside bars are the favorite ploy of deception.  Many times a market will swing up and down several times and all of the up and down moves occur within the range of a single bar.  If there are 10 bars in a row and none of those 10 bars closed outside the range of the first bar, THAT MARKET AIN'T MOVING DUDE!!!

If the range of the mother bar is large enough we can trade that range but, in the context of movement, THAT MARKET AIN'T MOVING DUDE!!!  It's like an athlete doing a stutter step before breaking off his/her real move.  There is a hell of a lot of movement in the stutter step.  IN fact, more movement than the true move, why?  Cause it's a fake dude...It's a fake!!!

Listen, the stuff I tell you are not concepts that I'm working out. It's already been done so, you can listen to the theories of your buddies on the forums or you can just take plain common sense and believe your own eyes when you look at charts.  I could write a whole book on just inside and outside bar trading but I've got enough in my materials.

Cheers, Jerry