Now that May is near the end it may be time to look back and see how your trading performance was for the past month. Or not! Some will surely want to forget this month and for those who do it should be noted that this was no ordinary month. Who will ever forget the swings on Thursday, May 6th! If you had capital at risk you certainly will not. EURJPY’s move from 122 all the way down to 110 and back to 116 in the same afternoon reflected what had to have been the most volatile period in the currency markets in recent times. I can only wish that you were on the right side of the trade.
That said one day does not make a month. Although there is a high degree of uncertainty in all markets at the moment I would not expect this past month to be repeated often in the months ahead. I say often since I’m not discounting the potential of another crazy summer, in other words “all traders off the beach!”
Whether you are creating profits or still using demo accounts you can always stand to learn more about the markets. In many cases you will find that the ones who do the most research happen to be the ones with the most experience.
This Thursday there is a webinar on Currensee titled “Using Elliot Wave analysis for Forex trading setups”. It is being presented by Lara Iriarte. The webinar is free for Currensee members. Lara analyzes patterns to help determine the most probable direction for her clients and trades forex using a pure Elliot Wave perspective.
Whether you trade EURUSD, Gold or S&P e-mini’s this webinar should add to your knowledge base of the markets. For example the moves in the currency markets this past month are well known. The image below shows hourly charts on EURUSD and EURJPY since early May.
EURUSD is on the left and EURJPY is on the right.
Chart is courtesy of Boston Technologies MT4.
Despite both pairs having Euro as the base currency and being traded against ‘safe-haven’ currencies their moves were far from identical. EURUSD found a bottom towards May 17th which would be well ahead of EURJPY. It also weathered a sizable rebound around May 20th while EURJPY would whip around before creating a lower-low for itself.
Point being that understanding the bigger picture and knowing when a security has reached its short, medium or long term target may help you create more trading profits. Trading separate securities identically may not be the way to go. All the more reason to expand your knowledge base when you have the chance and put the work in to help you become a better trader in the days ahead.
This report is for your information only and does not constitute investment or business advice or an offer to buy or sell securities.
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.