Read Larry Connors' blog – Short Term Trading Strategies
Dave Floyd is a professional FX and stock trader based in Bend, OR and the President of Aspen Trading Group. Dave's approach to FX combines technical and fundamental analysis that results in trades that fall into the swing trading time frame of several hours to several days. For a free trial to Dave Floyd's Daily Forex Alerts click here.
First, some follow up from last week’s article.
The text and chart below is from last
Wednesday’s column. This trade has played out well, and for those who may
have taken it, we still suggest closing the trade at the 1.5660 level and
tightening the stop-loss to 1.5640.
We are keen to go long EUR/CHF - we did not buy the break of the bear
trend-channel (see chart below) but are willing to buy pull-backs towards the
1.5600 level.
Look for a price target of 1.5660 or perhaps higher.
FYI: I have received a few emails asking why
there have been so few 24-Hour Target Trades in the last few weeks. The answer
is simply market conditions - we have not had much luck with short-term trades
(duration of less than 24-hours) in dollar-based pairs so far this year. Choppy
trading conditions have allowed for the stop-losses to be easily hit.
Since early 2006 (2nd week maybe?) we have focused more on longer-term trades,
several days in duration, and relied more heavily on the FX crosses, especially
the NZD crosses. This has served us well.
The chart below highlights the types of trades we have focusing on for 2006. Not
only has it provided good trading ideas to our research clients but to our
managed fund program as well.
We are also watching the JPY crosses for short
set-ups as it appears that the yen is on the verge of breaking this persistent
weakness that has plagued it for several months now. Crosses like NZD/JPY and
AUD/JPY seem like ideal crosses to short on pullbacks.
As always, feel free to send me your comments and questions.
Dave
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
