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<strong>1. INTRODUCTION:</strong>

From a trading perspective this week, we continued to work within very tight ranges in the Forex market although there was more volatility than in previous weeks.

However, geopolitical news events over shadowed the markets with a B777 commercial jet operated by Malaysian Airlines shot down by a missile over the Ukraine, the Israeli army moving into Gaza, militants attacking Kabul airport in Afghanistan and Isis militants in Iraq continuing to fight Iraqi forces to control more land mass.

There is a lot of trouble hanging over the markets like the “Sword of Damocles”.

When Economic data is released in the U.S. whether it is good news or bad news – the reaction from the equity markets is that they rise regardless. I believe this happens based on the fact that traders believe that the FED will always be a backstop. To some extent, I expect the FED to support equities should geopolitical news place U.S. equities under pressure. However, given the fact that Quantitative Easing, in my opinion, did NOT achieve all its goals and now the FED has moved monetary policy to tightening away from easing, I am NOT so sure that they would be as anxious to step in as quickly given the fact geopolitical news should be sorted in the first instance by politicians. (My God, there’s subject matter for a few blogs in that last sentence alone!!)

The Kiwi finally started a move lower on the back of weaker dairy prices and a CPi data miss. It will be interesting to see what happens this week at the RBNZ meeting and Glenn Wheeler’s statement. The markets were expecting a further 0.25% increase in interest rates but weakening dairy prices, recent economic data misses and the China slowdown uncertainty may delay this move. If that should happen, we could see the NZD/USD target 0.8500 very quickly. If he does increase rates we should move higher once again but I am NOT so certain that a test of the 52-week highs of 0.8842 will be on the cards. However, as James Bond once said…”Never Say Never!!”

<strong>2. THE PREMIUM SERVICE – OVERVIEW &amp; UPDATE:</strong>

In between all the news, I have been working away on a presentation to take the PREMIUM SERVICE on the road later this year in Montreal, and, I have set my objectives to be included in my TRADING PLAN for 2015.

With regards to the PREMIUM SERVICE the income from single-lot trades continues to grow each week. This gives me in my opinion, a very good compelling argument to approach new and part-time traders with a great affordable working Forex trading options.

The approach that I adopted in mid 2013, by being more flexible with lots sizes by adding and reducing trades as moves develop has really paid off on two fronts. Firstly, RISK MANAGEMENT is far more controllable and this approach enhances TRADE DISCIPLINES, which are paramount for success and longevity. Secondly, the FLEXIBILITY in trading allows us as traders to adapt to real-time situations whilst maybe not eliminating an excellent entry price, therefore my PREMIUM SERVICE approach of mixing, MICRO. MINI and STANDARD lot sizes within the same trades I believe is one of the critical success factors of the PREMIUM SERVICE subscriber option.

I have added to my list of broker relationships FXCM. I have obtained some great special reduced rate spreads for PREMIUM SERVICE subscribers. If you want to take advantage of these you need to contact me direct by email at <a href="mailto:premiumservice@weeklyfxdrivethru.com">premiumservice@weeklyfxdrivethru.com</a> so that I can manually provide you with a link to obtain better rate spreads.

As a Forex trader of 7 years, I have had several relationships with Forex Brokers. I have tested many and removed many for various reasons from my portfolio.

I now have two that I am very happy to call my preferred brokers for my readers of both blogs, they are: FXCM and BLACKWELL GLOBAL. They both offer different approaches and depending upon the type of trader and experience you have, they provide service options that fits what I have been looking for to offer PREMIUM SERVICE subscribers and readers of the WEEKLY FX DRIVE THRU.

<strong> </strong>

<strong>3. THE PREMIUM SERVICE - TRADING SUMMARY:</strong>
<p style="text-align: center;"><strong>RADAR, FLASH and FUNDAMENTAL TRADES
</strong><strong>JULY 2014 and YEAR to date:</strong></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 website.

Below are the excel spreadsheets covering this month so far and the year 2014 to date.

<a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/07/PREM-SERV-PROFITS1-19072014.png"><img class="aligncenter size-full wp-image-4112" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/07/PREM-SERV-PROFITS1-19072014.png" alt="PREM SERV PROFITS1 19072014" width="450" height="419" /></a>

<a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/07/PREM-SERV-PROFITS2-19072014.png"><img class="aligncenter size-full wp-image-4113" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/07/PREM-SERV-PROFITS2-19072014.png" alt="PREM SERV PROFITS2 19072014" width="463" height="423" /></a>

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, but it does show you the direction of the performance of the trades placed.

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.

<strong> </strong>

<strong> </strong>

<strong>4. THE FUNDAMENTAL TRADERS OVERVIEW:</strong><strong> </strong>
<p style="text-align: center;"><strong>FX BROKERS:</strong><strong> </strong></p>
<p style="text-align: center;"><strong>PART 1
</strong></p>
<p style="text-align: center;"><strong>HOW DO I CHOOSE A FX BROKER?</strong><strong> </strong><strong>
</strong></p>
<strong>INTRODUCTION:</strong>

For quite sometime I have been working on a piece for this blog on brokers. As most of my regular readers will know, I have been trading Forex for over 7 years, in fact, my LINKEDIN accounts sent out hundreds of 7 year anniversary messages a few weeks ago and my inbox has been bombarded ever since…hence I know that 7 years is a pretty accurate timeline to write.

For me, trading Forex is like anything else in business. I look at my Forex accounts with my brokers as business partnerships. I pay for a service they charge me competitively for that service (some more competitive than others!!) and fulfill what I want, which is hopefully to make $$$.

The reason that this article has been delayed is quite simply due to the following reasons.
<ol>
	<li>When I decided to launch the PREMIUM SERVICE, I did so knowing that I wanted subscribers to be able to go to my website click on anything that is loaded on to my pages, knowing that I have 100% approved the link to a third party.</li>
	<li>Prior to the PREMIUM SERVICE, I had relationships with four Forex brokers. I still have those relationships today. However, on launching the PREMIUM SERVICE there was a gap in what my prior brokers’ offered based upon my target sector for PREMIUM SERVICE subscribers and I therefore needed to add relationships. The gap by the way was the fact that my prior brokers only offered trades with Mini or Standard lots.</li>
	<li>So in order to facilitate a full range of trading options I added four additional brokers; IRON FX, SENSUS-CAPITAL MARKETS, BLACKWELL GLOBAL and FXCM (This company was held in the background as changes were made throughout 2014 to my broker relationships for PREMIUM SERVICE subscribers).</li>
	<li>If you look at my website today, only BLACKWELL GLOBAL and FXCM remain from the original new brokers. I will explain why they are the only ones left and why the others were removed as this article progresses.</li>
</ol>
<strong>
CHOOSING AN FX BROKER - IS IT REALLY A MINEFIELD?</strong><strong> </strong>

Short answer…. yes it can be!

To be perfectly honest, personally, I find choosing a broker to partner with, painful at times. At the outset, the salesperson that you speak to is over you like a rash. You know that the promises made to you about everything being just brilliant when you hand over your $$$ is just sales talk that you have to accept in many cases, there are always exceptions but I believe the 80/20 rule applies here. Unfortunately 80% are bad and only 20% are good. This is a very sad reflection upon the Forex Industry. It is a case of buyer beware.

The selling process and the promises made about customer service and reliability of the software used in so many occasions just makes it impossible for such customer service standards to ever to be achieved.

What do I look for in my broker relationships?
<ul>
	<li>Software that does not crash, it has to be reliable.</li>
	<li>Good customer service after depositing $$$ irrespective of the size of the balance maintained in the account.</li>
	<li>Fast and effective execution speeds.</li>
	<li>Competitive rate spreads / commissions.</li>
	<li>No hidden fees.</li>
	<li>Easy to use charts.</li>
	<li>Simple management of the software.</li>
	<li>No slippage.</li>
</ul>
I promised a few weeks back that I would go through why certain brokers have been eliminated from the PREMIUM SERVICE. These are just my experiences, you may enjoy a great relationship with brokers that I no longer want to trade with, and, this can happen. In my “inner circle” of trading buddies, we all have had different experiences and there are certain brokers none of us will go near, but we also have mixed opinions. The “I told you so” conversation does happen from time to time. I believe that your Account Manager is paramount and integral to the overall experience.

<a href="https://weeklyfxdrivethru.com/wp-content/uploads/2014/07/FX-BROKER-SERVICE-COMPARISONS-19072014.png"><img class="aligncenter size-full wp-image-4116" src="https://weeklyfxdrivethru.com/wp-content/uploads/2014/07/FX-BROKER-SERVICE-COMPARISONS-19072014.png" alt="FX BROKER SERVICE COMPARISONS 19072014" width="458" height="491" /></a>

From the references inside the above spreadsheet: -

(1) – Excellent Account Manager, his reputation meant everything to him. Obviously, he felt that he could no longer back up his promises with the support from the company.

(2) – Very attentive Account Manager in the beginning but the relationship suffered when funds were removed from my account without any communication, allegedly because of a regulatory requirement? Subsequently I have had this verified to an extent, but NOT ONE JOT of why no communications were made. My Account Manager left the company two weeks after this incident.

(3) – Absolutely hopeless, I was passed from one person to another so many times and I cannot remember how many times the chat line was dropped during this process. It was so frustrating and very time consuming; in fact it was a complete waste of time. This is a totally useless facility for this company, and it must frustrate traders with questions.

(4) – A dreadful experience. Originally, the IT / Corporate Governance department blamed my Internet connection. No one apparently had ever complained of slippage before…..yeah right! I had it on at least three occasions; I pursued my case through my Account Manager to Corporate Governance for a second time, with more specifics about the third big slippage incident. I was refunded in full, but to force this issue meant the relationship was over. In fairness they were very good on closing my account and transferring monies back to my bank.

(5) – This was incredible. I could not gain access to areas I was told that I could, and basically for brevity, I was advised that internally my account was set up incorrectly, not in line with what I was originally advised…. basically tough s**t. That was it for me, the final straw they had let me down twice….

So to answer the heading of this section and re-emphasize the point; yes, it can be a minefield.

I have broker relationships with FX PRO, SAXO and ALPARI in addition to FXCM and BLACKWELL GLOBAL through the WEEKLY FX DRIVE THRU and the PREMIUM SERVICE. Both of these brokers provide 100% of what I need to be totally confident with on any client introduction I should be involved with. I have special introductory incentives for subscribers to the PREMIUM SERVICE, but, readers of the FREE WEEKLY FX DRIVE THRU can also benefit as well.

Choosing a broker is NOT easy. It takes time to build a relationship and it also takes time to adjust to the little quirks that each broker has that differentiates them from each other. I often say in trading, waiting for the trade to come to you is a critical part of trading. Patience is a virtue in trading; it is also a key requirement in broker relationships. There are some great people working in brokers right now, if I could move all these people into a brand new start company, it would be awesome. The problem is that I can’t, and therefore you have to accept the rough with the smooth.

For me, one aspect of the relationship that makes matters much easier is consistency. As long as you know where you stand and all the contacts in the brokers you use “sing from the same hymn sheet”, then you have the parameters to work within.

Add the broker quirks, and then it allows me to trade certain brokers with certain types / styles of trade. This is crucial for me.

One very important aspect to consider when choosing a new or additional broker is to make sure your monies are 100% protected. Your money has to be safe and you need to know that the broker is regulated across several jurisdictions. It sounds crazy but you must look at this, do not take things for granted. Usually, at the foot of the broker’s welcome page you will see a list of where they have financial operations based and the appropriate regulated body to which the brokers’ actions are accountable.

Next week I will conclude this article with part 2: -

WHY AND HOW DO I TRADE WITH MULTIPLE FX BROKERS?

<strong> </strong><strong> </strong>

<strong>5. TRADER TOPICS:</strong>

This section’s content will re-appear after the summer break

<strong> </strong><strong> </strong>

<strong>6. MY CURRENT LIVE TRADES:</strong>

<strong>FLASH TRADES:</strong>

FT160
EUR/USD
Short
Entry: 1.3570
Stop Loss: 1.3650
Limit / Target: 1.3210
Weekly Closing Price: 1.3524
Position: +46 pips

FT161
EUR/GBP
Short
Entry: 0.7914
Stop Loss: 0.7950
Limit / Target: 0.7600
Weekly Closing Price: 0.7914
Position: level pips

FT162
USD/CAD
Long
Entry: 1.0775
Stop Loss: 1.0700
Limit / Target: 1.0875
Weekly Closing Price: 1.0732
Position: -43 pips

<strong>RADAR TRADES:</strong>

RT110
AUD/NZD
Long
Cost Average: 1.0825
Stop Loss: 1.0650
Limit / Target: 1.1350
Weekly Closing Price: 1.0797
Position: -28 pips

RT118
NZD/USD
Short
Cost Average: 0.8670
Stop Loss: 0.8860
Limit / Target: 0.8000
Weekly Closing Price: 0.8682
Position: -12 pips

RT134
GBP/CHF
Long
Cost Average: 1.5350
Stop Loss: 1.5270
Limit: 1.5480
Weekly Closing Price: 1.5314
Position: -36 pips

<strong>FUNDAMENTAL TRADES:</strong>

FUN14
GBP/NZD
Long (This trade is hedged from -100 pips)
Cost Average: 1.9800
Stop Loss: 1.9000
Limit / Target: 2.2350
Weekly Closing Price: 1.9587
Position: -213 pips

FUN36
EUR/CAD
Long
Cost Average: 1.4500
Stop Loss: 1.4000
Limit / Target: 1.5500
Weekly Closing Price: 1.4515
Position: +15 pips

FUN37
GBP/AUD
Long
Cost Average: 1.8200
Stop Loss: 1.7500
Limit / Target: 1.9155
Weekly Closing Price: 1.8180
Position: -20 pips

FUN38
GBP/CAD
Long
Cost Average: 1.8300
Stop Loss: 1.7700
Limit / Target: 1.9085
Weekly Closing Price: 1.8332
Position: +32 pips

<strong> </strong><strong> </strong>

<strong>7. TRADES THAT ARE ON MY RADAR:</strong>

I only have one trade on my radar. Given the geopolitical news I am not looking to add positions until I have seen the news over the weekend.

The trade in question is a FUNDAMENTAL trade, which is a longer-term trade, which I will hedge if I have to.

FUN35
EUR/NZD
Long
Entry: 1.5500
Stop: 1.5000
Limit: 1.6550

<strong> </strong>

<strong>8. LOOKING FORWARD…THE KEY SUPPORT &amp; RESISTANCE LEVELS WITH THE USD MAJORS:</strong>

<strong>EUR/USD: Closing Price 1.3604.</strong> A very frustrating pair to trade this past week. We finally broke through 1.3600 and took out 1.3500 on Friday only to peek back above 1.3500 to end the week. The great thing from my perspective is being short this pair is that there is now real bounce, and, it looks like the bear flag formation measured move that I have referred to over the past week is in play 1.3250 or just a shade below. If you are not yet short this pair obviously a move to 1.3575 offers great resistance and would be seen as a great area that was previous support to short from. The range is 1.3490 to 1.3575.<strong> </strong>

<strong>GBP/USD: Closing Price 1.7095</strong>. Not much of a move in the week based upon closing levels. Looking just on closing price one would have to say that consolidation is in play. Cable is not falling, it is holding up very well. So what does not fall only has one way to go. The question is when? Until the breakout happens the trading range is 1.7035 to 1.7150.

<strong>AUD/USD: Closing Price 0.9391</strong>. Virtually unchanged in the past week. The big news that I see with this pair is the cross-rate effect that has elevated the AUD/NZD in particular about 180 pips in the week. This cross-rate move has kept the AUD/USD well bid. It is however in a tight trading range of 0.9320 to 0.9430.<strong> </strong>

<strong>NZD/USD: Closing Price 0.8803</strong>. Finally…. finally…. finally we have seen a downside move but on Friday it held up quite well. The RBNZ interest rate decision this coming Wednesday will really place governor Graeme Wheeler on the hot spot. Economic data of late has been weaker and a rate increase that the market was expecting may backfire, on the other hand, a rate cut could do what the RBNZ has wanted all along this is a weaker Kiwi currency. A non-event on Wednesday could send this pair to 0.8500 very quickly. The trading range that I have in my sights for now though is 0.8640 to 0.8750.

<strong>USD/CAD: Closing Price 1.0733.</strong> Only a one pip move in the week. I think that huge trend line support above 1.0650 is keeping the “Loonie” well bid. I am long although out of the money thanks to strong economic data on Friday but I am happy to hold my position moving forward. The range is 1.0700 to 1.0790.

<strong>USD/CHF: Closing Price 0.8921</strong>. I missed my opportunity to keep my previous long trade in play. This is the pair that I will be looking to enter long next week should the EUR/USD fall below 1.3500 once again. For now the range that interests me is 0.8950 to 0.9040.

<strong>USD/JPY: Closing Price 101.22. </strong>We have tested just above 101.00 this week and personally I once again see this pair sub 100.00 before the JPY weakens across the board. This is just my opinion and it does not mean that I will be correct. This year I have got all my JPY predictions wrong…so maybe I am in line for a correct one this time? The range that I am paying attention to is 101.00 to 101.50.

<strong> </strong>

<strong> </strong>

<strong>9. MAJOR TRADING PAIRS WITH LONGER-TERM TRENDS MATCHING:</strong>

I have received a few emails from subscribers of the PREMIUM SERVICE asking me to place this in the WEEKLY FX DRIVE THRU. (I have tweeted it several times recently)

The following currency pairs have Short Term (DAILY), Medium Term (WEEKLY) and Long Term (MONTHLY) charts all trending in the same direction.

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

AUD/USD
USD/SEK

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

USD/CAD
USD/JPY
CHF/JPY
EUR/JPY
NZD/JPY
EUR/CAD
GBP/CAD
EUR/AUD

<strong> </strong>

<strong>10. MAJOR FOREX NEWS THIS WEEK THAT INTERESTS ME:</strong>

SUNDAY: N/A.

MONDAY: AUD – Glenn Stevens RBA speaks.

TUESDAY: USD – Core CPi.
TUESDAY: AUD - CPi.

WEDNESDAY: CAD – Core Retail Sales.
WEDNESDAY: NZD – Cash Rate, RBNZ Rate Statement and Trade Balance.
WEDNESDAY: CNY – HSBC Flash Manufacturing PMi.

THURSDAY: EUR – French &amp; German Flash Manufacturing PMi.
THURSDAY: GBP – Retail Sales.
THURSDAY: NZD – Business Confidence.

FRIDAY: EUR – German IFO Business Climate.
FRIDAY: GBP – GDP.

<strong> </strong>

<strong>11. FINAL THOUGHTS:</strong>

Coming up this week the big news item that is on my radar is the RBNZ interest rate decision on Wednesday. There are PMi releases in Europe and China but the RBNZ is the pick in my opinion.

Whilst we have entered the summer doldrums regarding liquidity we have huge geopolitical news hanging over the markets and this creates uncertainty and we all know that the markets do not like uncertainty.

We have to be very careful trading as the opportunity for massive volatility to run through the markets is high given the thinner cash flows through the Forex market. As I have written the last two weeks, we need to exercise TRADING DISCIPLINE and <strong>NOT</strong> FORCE TRADES as the chances are you run a much higher risk than normal of being caught out on the wrong side.

Take care and good luck.

Scott Pickering
The Pip Accumulator
Saturday July 19th 2014

EMAIL / FOLLOW ME AT:
premiumservice@weeklyfxdrivethru.com
Twitter: @pipaccumulator
Twitter: @ThePremService
Google+/scottpickering

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