<strong><span style="font-size: 14pt;">THE DAILY FX POST</span>
<span style="font-size: 14pt;">
from</span>
<span style="font-size: 14pt;">
THE PREMIUM SERVICE</span></strong>

&nbsp;

<strong>DATE: Thursday 9<sup>th</sup> October 2014
REF: #103</strong>

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<ol>
	<li><span style="font-size: 12pt;"><strong> OVERVIEW – INITIAL THOUGHTS:</strong></span></li>
</ol>
The USD continues to get beaten up today so far.

I have a sea of red across my profit/loss positions. Five LIVE trades, with three of them now hedged. The other two trades are modest loss positions.

Those of you who have been with me from before the PREMIUM SERVICE would be well aware that I hedge from time to time (I have supplied details of my hedging strategies to the TRADING ESSENTIALS area of the website). Usually, my hedging is reserved for FUNDAMENTAL TRADES but I did alert you yesterday that I would apply this strategy to the AUD/USD (FT191) and NZD/USD (FT190). I do not intend to keep these hedges in place for much longer than a few sessions as I do not want to pay SWAP COSTS for more than a few nights. It can be expensive at the moment. Thankfully these positions are 20% trade sizes, except the NZD/USD, which is 33%.

As you know I am a FUNDAMENTAL TRADER first then TECHNICAL. The technical were lined up for me, and my probability success rate is very good so I will carry on with these trades for the time being.

Last night (2200-2300 EDT), I was in email conversations with a couple of you who had pulled trades off the table to wait and see and re-enter next week. This is sensible. You simply cannot have a 100% success rate all the time it is 99.9999% impossible.

As I mentioned to you I tweeted my intentions with the GBP/USD (FT197) and EUR/USD (FT196) shorts. I am still TRADING MY PLAN with these two trades plus the other three. Should the EUR/USD and GBP/USD start to run away, beyond my tolerance levels I will cut them and review the other trades, and take a 100 pip or so loss. I am 100% prepared to do this, but NOT yet. If I closed all 5 trades my loss would be approximately 400 pips and the $$$ value in total not over 1.15% of my account balances, this is well within my published limit of 3% per trade.

I am very disciplined in MONEY/RISK MANAGEMENT and control this area very well. My RISK EXPOSURE right now allows me to more than treble the position sizes of my trades should I decide to do so.

I am fully aware and you guys should be as well, that everybody trades with different RISK TOLERANCES. As I have stated many, many times, it’s not about the size of your broker account it is how well you MANAGE RISK.

I have spoken several times with many of you on chat, SKYPE and email and given my thoughts on how I would approach the market in your shoes given your account size, and I know from feedback it has been successful more times than not.

I trade with the big picture always in my thoughts, the FUNDAMENTALS are poor in the EUROZONE and both the Australian and New Zealand governments want their currencies weakened. The ECB and FED are on monetary policy divergent paths.
Nothing changed yesterday, the FUNDAMENTALS are STILL POOR the market is what it is it moved on an interpretation of policy.

I hope that clarifies my trading position and future ideas / plans.

Moving on: -

Looking around the markets, the Asian and European sessions followed the “DOVISH” FED minutes and equities rallied and the USD was taken to the woodshed.

At the time of writing this article, European markets were starting to pullback and the U.S. futures were all negative. Regarding the “Holy Trinity” Oil continues to fall, but metals were all on the upside. Why GOLD is up beggar’s belief there is zero inflation in the world at the moment? (It looks like pure and simple technical move).

News today sees the U.S. Weekly Jobless claims and should these be good numbers and there is nothing that I can see that they should not, the USD should strengthen a little. Lets wait and see.

<strong> </strong>
<ol start="2">
	<li><span style="font-size: 14pt;"><strong> KEY NEWS EVENTS TODAY (BASED UPON (NYC) EDT TIME ZONE):</strong></span></li>
</ol>
USD: - Weekly Jobless Claims.
<strong> </strong>
<ol start="3">
	<li><span style="font-size: 14pt;"><strong> EXISTING LIVE TRADES:</strong></span></li>
</ol>
&nbsp;

<span style="font-size: 12pt;"><strong>RADAR TRADES:</strong></span>
No LIVE RADAR TRADES at the present time.<strong> </strong>

<strong> </strong>

<span style="font-size: 12pt;"><strong>FLASH TRADES:</strong></span>

FT190
NZD/USD
Short at 0.7793
Stop at 0.8050
Limit at 0.6580
Price Now: 0.7942
Current Profit / Loss Position: -154 pips
(THIS TRADE IS HEDGED FROM -100 PIPS)

FT191
AUD/USD
Short at 0.8709
Stop at 0.9100
Limit at 0.8000
Price Now: 0.8865
Current Profit / Loss Position: -158 pips
(THIS TRADE IS HEDGED FROM -100 PIPS)

FT196
EUR/USD
Short at 1.2747
Stop at 1.2850
Limit at 1.2450
Price Now: 1.2771
Current Profit / Loss Position: -24 pips

FT197
GBP/USD
Short at 1.6176
Stop at 1.6300
Limit at 1.5960
Price Now: 1.6208
Current Profit / Loss Position: -32 pips

<strong> </strong>

<span style="font-size: 12pt;"><strong>FUNDAMENTAL TRADES:</strong></span>

FUN44
GBP/NZD
Long at 2.0507
Stop at 2.0000
Limit at 2.3200
Price Now: 2.0396
Current Profit / Loss Position: -111 pips
(THIS TRADE IS HEDGED FROM -100 PIPS)

<strong> </strong>
<ol start="4">
	<li><span style="font-size: 14pt;"><strong> LIMIT &amp; STOP ORDERS WITH BROKERS:</strong></span></li>
</ol>
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I have no LIMIT or STOP orders with any brokers at the present time.

<strong> </strong><strong> </strong>
<ol start="5">
	<li><span style="font-size: 14pt;"><strong> FINAL THOUGHTS:</strong></span></li>
</ol>
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I am expecting profits to be taken on equities early on today by dealers selling into strength. I am expecting a small pullback today, if one does not happen I think that I will be pulling some trades off the table and wait until next week to re-enter again.

I will be on twitter to advise you of my actions as the day unfolds.

Good luck today.

Scott Pickering
The Pip Accumulator
<a href="http://www.weeklyfxdrivethru.com">www.weeklyfxdrivethru.com</a>
Twitter: @ThePremService
Email: premiumserice@weeklyfxdrivethru.com

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<strong>DISCLAIMER:</strong>

FLASH, RADAR and FUNDAMENTAL trade set-ups, “Tweets” and “Trade ideas” that are posted in my blogs or on Twitter are trades and set-ups that interest me. They are provided for training and informational purposes only and should not be interpreted as an offer, solicitation or recommendation of any specific security or investment strategy. Past performance is not indicative of future results. Trading Forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial adviser if you have any doubts.

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