Universal Market Trader Trading Blog

Nice and consistent trading session today.  We’ll take a look at 3 core markets — EURUSD, GBPUSD and GBPJPY trading off of the 5 minute charts.  You’ll see it is quite relaxed trading this way – we get exact entry points, profit targets and stop levels.  And, what is most important is we take trades where our reward is larger than our risk.  You might see strategies out there these days that have almost unlimited risk – they’ll keep a trade open until it closes at a profit – no matter what the risk is.  This is simply a mistake – you’ll have huge drawdowns and it becomes un-manageable.

That’s not the way we trade – we know our reward is greater, it’s very manageable and we can keep our risk down per trade on our accounts to 1% if we choose.  2% if we choose to get aggressive.  You see how that can be so much more comforting than having endless risk?  View the video and we’ll walk you through the basics of the trading strategy, how it traded today in the European and U.S. market hours and how clear-cut the trades are :

Live Forex Trading for Thursday, January 22, 2009 – Click Here for Video

GBPJPY Trading Thursday Jan. 22, 2009