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<b><span style="text-decoration: underline;">1. INTRODUCTION:</span></b>

Despite the fact I think that in my opinion the Forex market is currently a bit of a chop fest and that it seems to just want to squeeze extremes and exert as much pain as possible to traders, I had from a personal viewpoint my best trading week this year. This week over +500 pips profit again. My absolute $$$ return has me well ahead of my trading plan objective. To place the week in context, most of the pips were generated from related to CAD related trades in one day.

I do not want to promote “doom and gloom” but I see a period of chop fest intensifying as we move forward and in these situations sometimes your best trade is NOT to trade. I will debate the current market conditions later in this blog.

The big news items during the past week regarding the PMi’s in China and Europe plus the FOMC meeting minutes didn’t really move the major pairs out of their trading channels and largely they remained range bound. The big number in the market to trigger moves across the board appears to be the EUR/USD support at 1.3680. If this gives way, and on the day it breaks, we end the day below this level, I believe this will be the catalyst for some bold moves across many currency pairs.

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<b><span style="text-decoration: underline;">2. THE VIEW FROM MY TRADING DESK:</span></b><b style="line-height: 1.5em;"> </b>
<p align="center"><b>THE MARKET IS A CHOP FEST…HERE ARE SOME THOUGHTS ON SURVIVING:</b><b style="line-height: 1.5em;"> </b></p>
The market is what it is.

As traders we have to react and trade within what the market does whether we agree with the way the market implements news or reacts to technical levels. This can be a difficult pill to swallow if, like me, you are a fundamental before technical trader .

The market is frustrating at the present time, and we seem to be operating in channels that are difficult to trade in. Usually, channel trading is quite straightforward.

Over the past few years we have lived with and traded currencies within an upward trending equity market scenario. At the end of last year, the FED changed its monetary policy by introducing tapering.

This is in itself bound to have an effect.

Initially, when tapering was talked about it was generally believed that the USD would strengthen hard across the board and equities would fall. To date, this has not happened. Instead, the markets have continued to grind higher and although there are plenty of inter-market correlations that are no longer in sync the predicted USD strength still has not emerged along the lines thought of at the outset of tapering. Market dis-connects continue.

In the short to medium term I do believe that a major news event will be the trigger to get the ball moving but until that happens I think we ‘Chop”

Bit by bit the long term effects of Quantitative Easing will be tapered out of the markets and we will spend most of 2014 unwinding. Standing back it makes sense that conditions will be choppy as the Fed monetary policy changes take hold. I think because we live in a “now” society we expect the markets to react instantaneously; but we have to be patient.

Trader survival is therefore paramount in a “Chop Fest” environment. What are the survival rules to consider?
<ol>
	<li>Risk Management is now even more important than ever. One way to help in this area is to keep your risk tolerance the same but do it by taking smaller positions and widening your stops so that the overall risk is the same but you just have more trading space to deal with volatility.</li>
	<li>If you trade Standard lots maybe consider trading Mini lots instead. You can still build up profitable trades by adding multi lots. It also allows you greater flexibility to react to live trades by adding to positions or conversely taking partial position sizes off the table. Obviously, if you trade Mini lots you could consider Micro lots as an option.

The bottom line though is smaller positions sizes makes sense in this type of market condition.

You can always revert back when the market changes to more trending market.</li>
	<li>To give you an edge when entering trades. The best discipline that I have found is to use a “PULLBACK STRATEGY”. This basically involves waiting for a currency pair to pullback from the direction in which it is trading for maybe 15-30 minutes and then as it resumes it direction again you enter your trade back in the direction of the trend.

I use this strategy for about 80% of my FLASH TRADES that are given to subscribers in the PREMIUM SERVICE.

Every trade is a risk. The key is doing everything you can to minimise the risk parameters you have. The “PULLBACK STRATEGY” does this and once you get proficient in adopting it as a trading style it can be used 24 x 7 x 365.</li>
	<li>If you are a very Conservative trader and you do not like the “Chop Fest” - Stop trading…. and stand aside and keep your broker account in $$$. This is a great trading option if you are uncomfortable with present conditions. When I first started trading I was once told sometimes your best trade is the trade you don't take.

You are not chicken. Your trading style and your TRADING PLAN objectives (This is the discussion topic in TRADER TOPIC’s this week later in the blog), are your own.

Capital preservation is paramount to success. Without capital you simply cannot trade. The market is cyclical, sometimes just need to be patient and wait to get on board again.</li>
	<li>Basic trading guidelines often go out of the window through trader frustration particularly when, conditions are difficult to read and trends are virtually non-existent.

Go back to basics; Remember you sell into strength and you buy into weakness. Buy low and sell high. Review your interpretation of Fibonacci charts and how to use pivot points.</li>
</ol>
The above are just some very basic thoughts that if adopted should keep your broker accounts with a trading balance.

I wrote last week about FEAR and GREED and how “twitchy” the markets have become. My comments are still very much relevant this week.

Good luck with your trading and take car

<b><span style="text-decoration: underline;">
3. LOOKING FORWARD…THE KEY SUPPORT &amp; RESISTANCE LEVELS WITH THE USD MAJORS:</span></b>

<b>EUR/USD: Closing Price 1.3738.</b>  All eyes are on 1.3680 as the bull / bear line in the sand for the EUR/USD. To be honest the break of this support level is probably a lot to do with the way the Forex markets are operating at the moment. It is obviously very well supported.  I am looking at the range being 1.3680 to 1.3800.

<b>GBP/USD: Closing Price 1.6614.  </b>The cable (GBP/USD) is now under pressure after breaking out last week. It was refused entry above 1.6800 and was dumped down. Some mixed data from the UK has forced it even lower during the week taking the cross rate pairs with it as well. Personally, below 1.6600 I see a re-test of 1.6250 and resistance is really set now at 1.6650 and then 1.6700.

<b>AUD/USD: Closing Price 0.8978</b>.  The AUD I thought was going to put up the white flag earlier in the week but with equities continuing to grind higher it has remained reasonably well supported. It is not where it should be price wise given that the S &amp; P is hovering around all-time highs but nevertheless it has NOT collapsed. The range that interests me is 0.8950 to 0.9075.

<b>NZD/USD: Closing Price 0.8274</b>.  A very similar story with the NZD as it is with the AUD. Support is big at 0.8250 and resistance is excellent at 0.8320.

<b>USD/CAD: Closing Price 1.1107.</b>  Some stellar moves in the CAD and its cross rates during the week and today we pulled back almost 100 pips off the highs. Around this level is a place to establish a long position. The range is 1.1080 to 1.1230.

<b>USD/CHF: Closing Price 0.8879</b>.  I see absolutely no point whatsoever trading this pair. Boring, boring, boring. Wake me up at 0.8800.

<b>USD/JPY: Closing Price 102.48.  </b>We are still in exactly the same range as last week.  No change in my opinion. I think it’s going lower towards 99.50 before we hit 110.00. The range is 101.50 to 102.80.

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<b><span style="text-decoration: underline;">4. MAJOR FOREX NEWS THIS WEEK THAT INTERESTS ME:</span></b>

SUNDAY: N/A

MONDAY: N/A

TUESDAY: N/A

WEDNESDAY: N/A

THURSDAY: N/A

FRIDAY: EUR – CPi.

<b><span style="text-decoration: underline;"> </span></b>

<b><span style="text-decoration: underline;">5. PREMIUM SERVICE (WITH 2014 PERFORMANCE RESULTS TO DATE:)</span></b>

As there are always new readers of this blog each week, I thought that I should mention the subscriber based option of the WEEKLY FX DRIVE-THRU that has been in existence now since the beginning of 2014; THE PREMIUM SERVICE

It is an honest blog containing trade set-ups, profitable and losing trades, my ideas and thoughts and it also has for an instant communication to subscribers a dedicated protected TWITTER feed. All trades (profitable and losing) are monitored and recorded within the secure section of the WEEKLY FX DRIVE-THRU website.
<p align="center"><b style="line-height: 1.5em;"><span style="text-decoration: underline;">PREMIUM SERVICE   </span></b>

</p><p align="center">Are you a part-time forex trader?</p>
<p align="center">Are you a novice trader still coming to terms with the complexities of trading the forex market full-time?</p>
<p align="center">Do you feel a little overwhelmed with terminology, when to enter a trade, when to exit, what is being over-leveraged, what is effective risk / money management and what is a trading plan?</p>
<p align="center">The PREMIUM SERVICE may be an option worthy of serious consideration.</p>
<p align="center">The PREMIUM SERVICE is not a robot.</p>
<p align="center">The PREMIUM SERVICE it is not an automated system.</p>
<p align="center">The PREMIUM SERVICE is not an expensive fleecing series of daily financial updates, pages long that do not give you trading ideas or trade set-ups.</p>
<p align="center"><b><span style="text-decoration: underline;">What is the PREMIUM SERVICE?</span></b></p>
Firstly, the PREMIUM SERVICE is a subscriber only addition to The WEEKLY FX DRIVE-THRU. The WEEKLY FX DRIVE-THRU is a weekly blog that I started over two years ago. Its aim was to review my thoughts and ideas on the forex market. I then started to add trade set-ups and write about trades that would be on my mind if certain events took place.

I started to publish my future trade set-ups, which were predominantly profitable and as I approached my 100<sup>th</sup> blog, I decided that it was time to move to the next stage…. the PREMIUM SERVICE.

The PREMIUM SERVICE contains trade-set ups of my various styles of trades that I developed into a successful formula for trading the forex market with more profitable than losing trades.

As a subscriber to the PREMIUM SERVICE, you will receive all my suggested trades whether they are: - FLASH trades, RADAR trades or FUNDAMENTAL trades via an exclusive protected Twitter feed. I give you my thoughts on entry, exit, trade size and what type of lot to trade.

I do the risk assessment ahead of the trade. You decide whether you want to take the trade and what position size to take.

If you trade part-time: with the RADAR TRADE suggestions you simply load a limit order with your broker and the trade will enter and exit automatically, if you use the suggestions I provide, or you can chose your own exit strategy.

(Full details and definitions of FLASH, RADAR and FUNDAMENTAL trades are inside the secure members area of the PREMIUM SERVICE)

However, I do trade currencies to make money.

Whilst I like the idea of longer-term trading, if the market looks false to me I will cut profitable trades and bank money. I am not looking for the glory of three/four week trades to show I have nerves of steel to make +300 pips or so. If I can make 300 pips from three or four 24/48-hour trades instead, who cares? It’s all about banking profits and minimizing risk.

I will have a balance of intra-day, swing and long term trades. It is your choice to pick what you want to take and what to risk. I am a low-risk very conservative trader.
<p align="center">FUNDAMENTALS MATTER TO ME</p>
<p align="center">I TRADE TO MAKE MONEY…NOT TO PICK TOPS OR BOTTOMS</p>
<p align="center">I TRADE LOW RISK</p>
<p align="center">I DO NOT CHASE MARKETS</p>
<p align="center">I LIKE THE TRADES TO COME TO ME</p>
<p align="center">I AM NOT A GREEDY TRADER</p>
<p align="center">I LIKE TO TRADE MOMENTUMS IN THE DIRECTION OF TRENDS</p>
<p align="center">I USE FIBONACCI LEVELS TO ENTER &amp; EXIT ON MANY TRADES</p>
<p align="center">PLUS</p>
<p align="center">MY TRADING STYLE IS MIXED EVEN WITH THE ABOVE KEY BASICS</p>
<p align="center">I USE THE PULLBACK STRATEGY TO ENTER AND I LIKE SWING AND LONGER-TERM TRADES (WHEN POSSIBLE)</p>
The members area of the website contains not just the comprehensive trading history / journal of trades but it also contains as much support information as I can gather that is of use to help us all trade profitably. As time moves on, the support pages areas will increase so that it becomes a one-stop point of reference for all styles and types of traders regardless of experience.

I am hoping to have a chat room so that subscribers and myself can chat live about potential live trades. In addition, if the number of participants is economically viable, I will hold webinars on trading issues. Below is a list of questions so far that will either be addressed by webinar or by a future section within a blog post.
<p align="center"><b>Trade Plans and how to work with them
How to find a good broker to partner with</b>
<b>What trades for what broker
Micro, Mini or Standard lots
Placing Stops</b>
<b>Strategies on when to enter and exit trades</b>
<b>Risk Assessment</b>
<b>When to fade trades</b>
<b>How to cost average effectively</b>
<b>How to use Trade Zones effectively - Buy Zones and Sell zones</b>
<b>Working with Fibonacci levels</b>
<b>Basic Chart analysis</b></p>
The PREMIUM SERVICE will evolve as it moves forward. I have lots of ideas to integrate into this area, but I am also open to ideas from readers / followers and subscribers.

This is a very important step for me as well; I want the PREMIUM SERVICE to be different to other services currently available.

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Whilst upon first look, it may appear that the Premium Service is directed solely at new traders, or those with intermediate skill levels. Please note this is not my intention. Trading can be lonely, and sometimes it is good to feel that you are part of a team. With this in mind, I am thinking that a “Chat Room” style area would be of benefit to all traders to share ideas and trade set-ups. Plus, whether you are a new trader or an experienced trader it is always good to have a library of information available close at hand.

What are the costs?

There will be 40 weekly blogs / issues per year. I will not write in the summer and over Christmas periods. There will be an unlimited amount of Twitter follow-ups to the exclusive subscribers on a Twitter secure feed during the week to review and act upon “FLASH, RADAR and FUNDAMENTAL trades” and issues emanating from previous blogs.
<p align="center"><b>There are three subscription options: </b></p>
<p align="center"><b>ANNUAL (40 WEEK) SUBSCRIPTION: $750.00 (this equates to $18.75 per week) </b></p>
<p align="center"><b>20 WEEKS SUBSCRIPTION: $450.00 (this equates to $22.50 per week)  </b></p>
<p align="center"><b>10 WEEKS SUBSCRIPTION: $250.00 (this equates to $25.00 per week) </b></p>
<p align="center"><b>(All Fees are quoted in USD
and
Please note: There are no refunds once a subscription is accepted)</b></p>
To expand on the statements made above and, hopefully place costs into perspective should you still doubt the value of a subscription.

Below are the February 2014 month to date performance results so far and a combined year to date 2014 summary.
<p align="center"><b><span style="text-decoration: underline;"> </span></b></p>
<p align="center"><b><span style="text-decoration: underline;">RADAR, FLASH and FUNDAMENTAL TRADES</span></b></p>
<p align="center"><b><span style="text-decoration: underline;">FEBRUARY 2014 and YEAR to date:</span></b></p>

Below I show the up to date performances for my various trading styles. Full excel spreadsheets are in the subscriber area of the PREMIUM SERVICE.

<b><span style="text-decoration: underline;">RADAR TRADES – FEBRUARY 2014</span></b>
<p align="center"><b><span style="text-decoration: underline;">PROFITS FROM SINGLE LOT COMPLETED RADAR TRADES:</span></b></p>
<p align="center">1 x MICRO-LOT:
11 trades at $0.10 cents each = $1.10 risk for $14.80 profit.

<span style="line-height: 1.5em;">1 x MINI-LOT:
</span><span style="line-height: 1.5em;">11 trades at $1.00 each = $11.00 risk for $148.00 profit.

</span><span style="line-height: 1.5em;">1 x STANDARD LOT:
</span><span style="line-height: 1.5em;">11 trades at $10.00 each = $110.00 risk for $1,480.00 profit.</span></p>
<b><span style="text-decoration: underline;">FLASH TRADES – FEBRUARY 2014:</span></b>
<p align="center"><b><span style="text-decoration: underline;">PROFITS FROM SINGLE LOT COMPLETED FLASH TRADES</span></b></p>
<p align="center">1 x MICRO-LOT:
24 trades at $0.10 cents each = $2.40 cents risk for $59.90 profit.</p>
<p align="center">1 x MINI-LOT:
24 trades at $1.00 each = $24.00 risk for $599.00 profit.</p>
<p align="center">1 x STANDARD LOT:
24 trades at $10.00 each = $240.00 risk for $5,990.00 profit.</p>
<p align="center"><b><span style="text-decoration: underline;"> </span></b></p>
<b><span style="text-decoration: underline;">FUNDAMENTAL TRADES – FEBRUARY 2014</span></b><b style="line-height: 1.5em;"><span style="text-decoration: underline;"> </span></b>
<p align="center"><b><span style="text-decoration: underline;">PROFITS FROM SINGLE LOT COMPLETED FUNDAMENTAL TRADES:</span></b></p>
<p align="center">1 x MICRO-LOT:
13 trades at $0.10 cents each = $1.30 cents risk for $16.10 loss.</p>
<p align="center">1 x MINI-LOT:
13 trades at $1.00 each = $13.00 risk for $161.00 loss.</p>
<p align="center">1 x STANDARD LOT:
13 trades at $10.00 each = $130.00 risk for $1,610.00 loss


</p>
<p align="center"><b><span style="text-decoration: underline;">COMBINED FLASH, RADAR AND FUNDAMENTAL TRADES PROFIT PERFORMANCE
</span></b><b><span style="text-decoration: underline;">FEBRUARY - 2014…SO FAR:</span></b></p>
<p align="center">TRADING MICRO-LOTS:
48 trades at $0.10 cents each = $4.80 risk for $58.60 profit.</p>
<p align="center"> TRADING MINI-LOTS:
48 trades at $1.00 each = $48.00 risk for $586.00 profit.</p>
<p align="center"> TRADING STANDARD LOTS:
48 trades at $10.00 each = $480.00 risk for $5,860.00 profit.</p>
<p align="center"><b><span style="text-decoration: underline;"> </span></b></p>
<p align="center"><b><span style="text-decoration: underline;">COMBINED FLASH, RADAR AND FUNDAMENTAL TRADES PROFIT PERFORMANCE</span></b></p>
<p align="center"><b><span style="text-decoration: underline;">TOTAL 2014…SO FAR:</span></b></p>
<p align="center">TRADING MICRO-LOTS:
92 trades at $0.10 cents each = $9.20 risk for $137.10 profit.</p>
<p align="center">TRADING MINI-LOTS:
92 trades at $1.00 each = $92.00 risk for $1,371.00 profit.</p>
<p align="center">TRADING STANDARD LOTS:
92 trades at $10.00 each = $920.00 risk for $13,710.00 profit.</p>
The above examples are for illustration purposes only:

The profitability examples detailed above are based solely upon single lot trading, regardless of lot type. If multiple lot sizes are traded the profitability margins will be different than those shown.

Just to provide more information so you understand where I am coming from with the risk / reward statements above. All of my trades are of different sizes and different size lot types. The above does not reflect the actual trading performance. I like to add to trades, profits are taken as the trade progresses and my overall cost average moves several times. All of my trades are of different lot styles. I trade a mixture of micro lots, mini lots and standard lots across my brokers.

The above results simply display your profit or loss if you placed a single lot trade on all the set-ups suggested and did nothing else.

<b><span style="text-decoration: underline;">6. FINAL THOUGHTS:</span></b>

Not much in news events that interest me this week.

I am expecting the “Chop Fest” to continue and with no major published news that really interests me due to published I think that the forex markets will be in the hands of the equity markets for direction and also “God help us all” the “numpty” politicians claiming their 30 seconds of TV fame with sound- bytes.

With that in mind, always remember that there is a market everyday. You do not need to trade everyday to make your financial goals. If it’s too choppy stand aside and in any event take smaller position sizes.

Good luck and trade within your TRADE PLAN guidelines and most importantly use sound MONEY MANAGEMENT SKILLS to control your risk.

PLAN YOUR TRADES and TRADE YOUR PLAN.

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Scott Pickering
The Pip Accumulator
Saturday February 22nd 2014

EMAIL / FOLLOW ME AT:
drivethru@weeklyfxdrivethru.com
Twitter: @pipaccumulator
<span style="line-height: 1.5em;">Google+/scottpickering
</span><span style="line-height: 1.5em;">StockTwits; thepipaccumulator</span>

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