Trading In Black And White Forex Trading Newsletter - 5/30/06

Trading In Black And White Forex Trading Newsletter - 5/30/06
We'd like to start by wishing you a Happy Memorial Day. We hope you had a great extended weekend, we sure did. Between the barbecues and the boating and the sweets...well, life is good.Ok, so how has this month's trading been? Well, $firstname, I'm glad you asked.But, before we get to it, we want to give you a quick review of our trading goals.We shoot for a 20 pip per day average, which would lead to a 100 pip per week average, which would lead to a 400 pip per month average.If we, or you, are able to achieve this type of success our account would increase at a ridiculous rate assuming that we have a quality money management system in place.So, now that we have that recapped...let's move on to this month.So far, May has been a great month for us. We have made over 1000 pips in profit (in fact more than 10% above 1000 pips) and had a win to loss ratio of better than 3 to 1 (that's 75% for the math challenged).In fact, in the last two weeks we only had one losing trade.To sum it up; we have made more than double (actually more than triple) our goal in pips. A month like this accelerates our compounding scheme greatly.Ok, enough about that...let's move onto tonight's trading.With the ridiculous drop on Friday, the charts are pointing to a continuation in the downtrend. And, who are we to fight the charts.Now that we know that we are looking to go short, let's try and find some good trading levels.1.8720, 1.8770, and 1.8850 all seem to be credible resistance levels. Take note of how far up we've come since the open of the market on Monday night. This information will come into play when you are looking for your trades.Look for good price action around these levels to find your entry point.As far as support goes...what support?Obviously, there are minor levels of support in between the low of 1.8529 and the current price. All you have to do is draw Fibonacci lines and you can find minor support levels. None of these, however, are considered valid UNTIL they hold.Also, remember, that whole numbers can act as support and resistance levels as well.So, what does this mean to you?This might be a good time to increase your profit targets. Maybe move your stops to break even if you get a nice move in your direction.The reason for this rare occurrence of us mentioning how YOU should use your stops is that we want you to open your mind to different styles of trading.No trading style is perfect for everyone. It's very important that you take the time to learn what trading style works best for you.Well, that's all we have to say about tonight's trading.We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with this Elite Forex Trading Course.