MESSAGE FROM JACKO (JUL 2008) 139 - 152

MESSAGE FROM JACKO 152

It is 3.00 am NY time Tuesday July 15 and the market is 1.5941.

I am getting impatient to get into this market. I can feel a big break upwards coming very soon. I am hoping
that I will get a bargain entry soon. As I stated yesterday, the news of Fannie and Freddie has come out, but
the impact hasn't hit yet. Sooner or later it is going to dawn on the market that this problem is so big that it is
beyond the US governments control.


Edit 3.10am Market getting volatile in the lead up to London opening


Edit 5.45am NY time The market is getting excited/agitated. It has bounced up quickly to 1.6037 and is now
back at 1.5993
It has started to dawn on the market that the credit crisis of weeks ago has not got better. It has, in fact, got
horribly worse.
Whatever Bernanke (the Fed) and Paulson (Treasury) have to say today (at 10am and 11.30am respectively)...the market won't believe them!!!
There is are two huge elephants in the china shop at the moment (Fannie and Freddie) and they are not dancing
a calm waltz...they are breakdancing, hip hopping and just dancing in a steroid/crystal meth/crack induced frenzy.
Having said that, there is a trade opportunity..... for the REAL risk takers. Here is how I see a potential
trade opportunity possibly panning out.
The market will be volatile until 10am NY time (when Bernanke speaks). As soon as he starts to talk, the
market will be incredulous (what do you mean.... You can't help Fannie and Freddie because they are so big?)
...then start laughing...then sell the USD mercilessly. (Edit: Has not happened... yet. I think I was wwwwrong
!!)

Edit 9.25am NY time Still keen on a 1.5750-1.5800 buy. This market may be very fast today.
Edit 10.45am NY time Bernanke is saying that US banking system is well capitalised... Dow is down 170...

I am staying out of this market ....I will wait for a much bigger dip than where it is now (1.5980). I am
hoping that the market will pull back to the 50% fib (from 1.5611 to 1.6018) at 1.5800, which also
coincides with the weak 4H trendline touching 1.5634 (July 9) and 1.5712 July 10).

Emails

Email 1

I am already starting to get more comfortable trading the longer times frames ...... current in a Eur trade and +
160 pips from last week and still running. Excellent
Please help with the following:

1. Stop Losses: I have been churning this for ages ...... you can have a fixed SL, a TSL and/or a fixed TP. You
tend to use the 100TSL ..... the benefit I see in using this is that it very quickly reduces your loss exposure as
the market moves in your direction. However, the disadvantages are that it may cut you short on a good trade
when/if the market retraces as so often it does. Yes, it is a "balance" decision...
Is there any statistical evidence/reserach out there relating to SL, TSL etc etc over a period of time? Not that
we have ever been able to find And do the majority of professional traders use a fixed or TSL? Both are popular
From a personal point of view I would rather use: a Fixed 100 SL and a TP of 300 pips plus (1:3 ratio).
Hmmm...OK
Is it more a case of not how much profit to make ... but rather how to reduce your exposure to losses as soon
as possible using a TSL? Yes, it takes away the random decision process of when to reduce a fixed Stop Loss
(from say 100 pips to 50 pip)

Email 2

Today as I read the blog, I noted that you are really really worried with this Fannie issue. I think that this was

the first time that you write in the blog with such concern. But i'm not so sure how you read the possible
impact in the market. Why do you think it's an abyss? Yes...this is a BIG issue that won't go away and affects
50% of US mortgages... It goes to the base level (households) of the US economy .Do you think that the outcome
of this is unpredictable? yes, because the problem is so big that there really does not appear to be any
solutions Sorry but could you elaborate a little more on this issue? Will discuss it in the blog


MESSAGE FROM JACKO 151

It is 3.45 am NY time Monday July 14 and the market is 1.5879.

After the market reached a high 1.5968, it then declined to hit my TSL of 1.5868 (1.5968 -100 = 1.5868) of my
A-H trade. This was a 50 pip loss.

There is talk of a US govt bailout of Fannie Mae and Freddie Mac which is lifting the USD. However, there are
two issues: firstly, is that bailouts usually don't work in the long run and secondly, Fannie Mae and Freddie Mac
control $5.3 Trillion worth of mortgages (or 50% of the total US mortgage market).

The medium term for the USD is still down (Euro is going up).

I am now flat with no positions, and am looking for the next place to get back in for the next leg up. Given the
rise last week, we may have a while to wait before the market to calm down from the failure of Fannie and
Freddie, but these are long term systemic problems in the US financial system that will NOT go away overnight.
I am looking for a place around the 1.5750-1.5800 mark but will wait for more market action over the next day
or two to guide me.

Edit 7.15am NY time The market is at 1.5852. This area to me is no-man's land.
I am waiting for a more substantial pullback before I get interested in this. The 1.5790 is the 50% fib mark so I
would be looking for a bargain at 1.5750. Given the severity of the problems in the US economy at the moment I
would expect to see a larger volitility early this week. I will be trading cautiously !!

Edit 11.40am NY time. Market has moved to 1.5900, but I am staying out of this market. This is a really
dangerous place to be at the moment. We are looking into an abyss. This is a USD $5.3 Trillion systemic problem
(that is, it goes to the core of the US financial system). I have been there in when the 1987 stock market crash
occurred, (the dotcom bust later was a walk in the park in comparison to 1987), but this issue with Fannie and
Freddie really, really concerns me. The problem is that the impact hasn't hit yet....

Edit 9.30pm NY time Market still at 1.5900 mark. May look at trading in a day or two, but I want to see more
info about Freddie and Fannie.


MESSAGE FROM JACKO 150

It is 9.30 am NY time Saturday July 12 and the market is closed.

The market closed at 1.5922. My one trade at 1.5660 was a nice one when I closed at 1.5790 for a 130 pip
profit.
My long standing A-H trade from Message 95 was finally activated at 1.5918. (I am currently in profit by a huge
4 pips...lol). The TSL is now at 1.5846

Weekly Review.

Not a bad week. 130 pips profit. No 20/20 hindsight regrets. I could have been kicking myself over not leaving
the 100 pip TSL to take me out, in which case I would still be in my original trade at 1.5660.
However, I believe that the rise from the Fannie Mae and Freddie Mac issue was something totally out of left
field and was such a rare occurrence that it just was one of those "unpredictable" things that no trader could
reasonably predict. (I have been aware of the Fannie Mae and Freddie Mac issue for about two weeks but the
likelihood of those two institutions collapsing was just unthinkable to me).


I also have the A-H trade from 1.5918. In hindsight I would have preferred for this not to have been activated
after such a rapid rise, but the rules are the rules!! I think that there will be a decline in the first half of the
week as the Fannie Mae and Freddie Mac issue settles down, but the market might still rally. (In other words, I
could easily be wwwrong!! about the decline, so the trade stays in play).

Whatever happens, I think that the likelihood of us seeing 1.5700 again soon is almost non existent (1.5700 is
dust !!). I would dearly love to get the opportunity to get in again at anywhere near 1.5700-1.5750...if that is
possible, I would back up the truck to load up on the contracts. But you never know in Forex....if the US govt
(that is, the poor US taxpayer !!!) bails out the Fannie Mae and Freddie Mac, we may see a very quick and very
temporary drop. If we see that I will be an aggressive buyer.

As to what targets I have planned this week, I will let the A-H play itself out. Also I want to see what happens
with Fannie Mae and Freddie Mac situation over the weekend. Bernanke simply cannot let this fester over the
weekend and do nothing !!!

This market is going to Euro 2.000 within 12-18 months.

Have a nice weekend...


MESSAGE FROM JACKO 149

It is 1.35am NY time Friday July 11 and the market is at 1.5774

I have just read yesterday's two sets of Messages (147 and 148). I have decided to give up the coffee
!!!...LOL...The market is sitting pretty near where I got out at 1.5790 and I am now shaking my head wondering
why I was in frantic mode.

I am now looking to get back into a trade because I believe that the up-trend is starting to gain strength and
momentum. Now any point below where I go out yesterday is a bargain because I am buying back into the same
movement but at a lower price.

My thinking at the moment is that 1.5700 might be too optimistic, and 1.5750 might be too high (it is 100 pips
from the 1.5650 magnet price, in case I am wrong). Also we are heading into a Friday, so I am reluctant to jump
into too early.

I am leaving my orders at 1.5700 for the present time, but am considering maybe 20 pips higher at 1.5720
just to make sure that I get set at a reasonably safe price

Edit 6.40am NY time. Market has moved up to 1.5824 and is now at 1.5808. Now is the time we start to wonder
if we have done the wrong thing by jumping out and are therefore tempted to buy in at these prices.
I am prepared to wait until the market kicks back down again.
It is a Friday and the US market dies after lunch. We may see some upward presure this morning. However, the
dealers try to unwind all their positions before the weekend. Given the rapid run yesterday, they may try to
close out their buys today just before lunch.
The market at the moment is too high for me. I am going to enjoy spending some of my weeks profit at
dinner.

Edit 9.50am NY time Impact of the implosion of Fannie Mae and Freddie Mac is a plunge in the USD (rise in
euro). (Another US govt bail-out is on the way !!). The US economy is waaaay sicker than we have been led to
believe. We will easily see Euro at 2.000 in the next 12-18 months. Someone should be putting those
investment Bank CEO's in jail, instead of allowing them to be paid $65 Million departure payments

My A-H trade at 1.5918 (see Message 95) has been triggered

Edit 11.25am NY time My A-H trade is sitting at the high end of the price curve at 1.5918 (the market is
currently consolidating around the 1.5905 mark after reaching a high of 1.5946). My TSL has been moved to
1.5846 (1.5946 - 100 pips = 1.5846).

Emails

Email 1

But I still want to ask you why did you decided to break your rule and close it at 5790? Too much coffee ??? No
seriously, the speed of the rise was unusual, so I just thought that I might grab some extra profits. Ok, I agree
that you felt it might retrace back and you didnt want to let profits on the table, I also think that its better to
close half of the position at a certain profit, instead of trailing the whole position. But yesterday you said
exactly the contrary, that we should always stick to the rules, in spite of the different market conditions and of
what some turtles say, that we should take profits early. However, it seems that today you did the same thing
:). It was the very rapid rise that was the kicker...when a market goes up exponentially in a very short period
you can be reasonably certain that it will fall back

Email 2

In the blog when you say you are a buyer at 1.5700, do you mean that you have a buy order at that price? Yes,
but I think that given the appalling news this morning (NY time) about Fannie mae and Freddie Mac, I think that
1.5700 is dust

Email 3

It appears another successful week for you. Cheers on that! thanks
I have a few questions, why the jump out at 1.5800? Why not let the profit roll? I am sure everyone is asking
this! I do see strong resistance at this level.The market went up very quickly...when a market goes up
exponentially in a very short period you can be reasonably certain that it will fall back. I just decided to grab
some profits while it was up there

Also for the entry at 1.5650. Can you confirm that the fib was at 1.5600 on the H4 (From Feb 13 low to July 3
High), and you picked 1.5650 because you want to get in early (before the drop to 5600)?? 1.5650 had been a
congestion point and this market was showing signs of strength so I didn't thnk that this market would drop as
low as 1.5600. (Remember, this market is going up.)

Then finally why reentry in 1.5700? I see neither resistance nor fib there, (again I can be very wrong!) Before
the Fannie Mae and Freddie Mac issue today, I was expecting it to try to drop back to the 1.5650 area again,
but that the buyers would prevent it from falling all the way back. So 1.5700 would be a stronger round
number. I think that 1.5700 is now dust

It appears to me the only logical reentry would be 1.5650, because I have entered there twice (jumped back in
shortly after being stopped out the first time) and both were winners. But the market is going UP...therefore
the higher lows will be higher


Email 4

With regards to the trade that you closed out yesterday at 90, i noticed it strayed from your regular strategy,
and i think its one of the only times you have ever done it since starting the group as far as the blogs go.

yes...and in that wonderful thing called hindsight it was the wrong thing to do...but the Fannie Mae and
Freddie Mac issue came from out of left field (I have been reading about it all week but this morning the shares
went into freefall...so I expect another US govt ...READ: THE TAXPAYER !!.....bail out this weekend. The US
taxpayer is is effectively paying for all those ass...s on Wall St) .....GET ME MY GUNS !!!!!....LOL

Email 5

Had no idea you were SMS'ing each member individually. I am not experienced with SMS, but I know it is
possible to create a group and sent to the group. That way you are only writing one SMS. Maybe this
functionality depends on your phone and/or any software installed. I visited Nokia today and they showed me
all about groups on my telephone.. It will be much easier from now on.


MESSAGE FROM JACKO 148...... URGENT MESSAGE

It is 11.00am NY time Thursday July 10 and the market is at 1.5793

URGENT: Edit 11.00am NY time EVERYBODY OUT !!! I have decided that the market has run a bit too fast
and will see a correction. I am closing at 1.5790 (just under 1.5800)...SMS being sent now

Edit 11.35am I have screwed up on my SMSes.... I got so frantic junking those contracts that I forgot which
people that I had SMSed. If some of you got two messages, and some got none, I apologise. Will send again
now


Edit 11.45am I am starting to settle down. Am sending SMSes as I type. Also answering emails Man, that was
frantic stuff. Now I remember why I took the longer time frame route with fixed TSL stops. However, this was
an exceptional case of I considered the market had just run too hard to fast and I did not want to give
much back today...

Edit 12.10 pm I think that I have cleared and checked everything now. I apologise for the screw up on SMSes. I
will get a better process to make sure that doesn't happen again

Edit 12.15pm After closing that last trade for 130 pips profit, I am a buyer again at 1.5700.

Emails

Email 1

It was amazing as I just read your most recent post (#147 Urgent) as I had already closed at 1.5800 and was
feeling as though I was not following your plan guidance. For me I was 100+ pips in profit and felt good with
that. I also sold earlier on the trade before that from 1.5650 to 1.5728 as it approached the weekly central
pivot point on the 4 hr chart-----because again I was happy with the 70 + pips. Good strategy...for a ranging
market My question is as you look back on all your trades have you come up with a winning percentage (I
realize it is not wins vs. losses, but how much you win when you win and how much you lose when you lose)?. At
what point does it become enough? It is not a matter of numbers of pips, it is more a matter of lifestyle and a
desire to do this as a lifetime business. (I realise that I could be much more profitable in the short term if I
traded harder but I don't want to do that... and to me it is not worth dying for...LOL) I know the trade prior to
this last one you were up +102 pips ($200,000) to see it turn back around for +2! Wow. You have nerves of
steel.LOL You need to take my wife shopping...now THAT requires nerves of steel...LOL I know you winning
percentage is very good. So if you closed whenever you were positive by whatever your SL was (100) and your
winning percentage is greater than 50%---your in the money. Is this too conservative? The rule is: Let your
profits run...today was just too much too fast and it hit a round number.Again, Thank you for sharing all your
thoughts. I have learned a great deal from you. Thanks...

PS I really got in a mess with my SMS messages...I was junking contracts, SMSing the group and confirming a
closed sale with one of the brokers. I was even trying to email members. Man, I nearly had a heart attack...Fun
though...I just wouldn't want to do that every day !!


MESSAGE FROM JACKO 147

It is 2.00am NY time Thursday July 10 and the market is at 1.5725

My trade from yesterday at 1.5660 is progressing well. The TSL has been moved to 1.5648 (That is, 1.5748 -100
pips = 1.5648). So my maximum exposure is 12 pips.

I am concerned that the market has bounced down from 1.5748 again. It could indicate that the market may
drift back to the high 1.5600's. But if the market breaks through the 1.5750 area, then we might have a
pleasant ride up.

I also want to repeat what I said yesterday "I ... think that we are near a break upwards away from this area
soon". However after this current trade runs itself out there will be more opportunites to buy back around the
1.5700 area again in preparation for the next run up towards 1.6000+. As I have said before, I believe that this
market will come very close to 2.000, MAYBE even by the end of next year.

Edit 2.50am NY time The market has just hit 1.5761. My TSL has now been adjusted to 1.5661. (I am now in a
"free trade again).

Edit 7.10am NY time The market has come back to 1.5705. Whoever said that "ranging" markets are hell for
trend traders was sooo right !!!!...LOL

NOTE I am getting a number of emails asking where they should get in....Please remember this blog is to tell
you what and when and why I am trading. It is not a signal service of hypothetical trades. You are seeing MY
trades (good and bad!!..LOL)
EDIT I have just re-read the note above. I am sorry. This sounds much more terse than I intended. I am happy
to give private advice like in the email below, but I don't want to put hypothetical trades here on the blog. This
blog is ONLY for MY trades so that you can see the real thing.

Edit 10.45am NY time The market has gone for a run and is now at 1.5783. My TSL has now been adjusted to
1.5683. I now have 23 pips guaranteed profit and the trade is still running. I may consider reducing the TSL to
50 pips later in the trade.

Edit 11.00am NY time I have decided that the market has run a bit too fast and will see a correction. I am
closing at 1.5790 (just under 1.5800)

Emails

Email 1

I missed out on todays trade and was not able to enter the market @1.5660. OK Currently the market is @
1.5730. So what would be the best option , should I place a limit buy order @1.5700 ? Yes, but there is no
rush...I think that the market will come back again later (hopefully AFTER I make some money from this
trade) or should I wait for 1.5660.
Also does the A-H strategy come into place only when there is a loss YES or does it come into play even at Break even or some minimal profit like a 5 pip profit? Noooo !! (Stop fudging...LOL)Alos in one of the blogs you
mentioned"I just didn't think that this was going to come back to hit such a strong number( 1.5650)" Do you
consider all 50% fib as strong numbers or does 1.5650 has any more significance ? There are three sets of
numbers I use; Round numbers, Support and Resistance and the 50% fib. I look at each of them and the strength
of each, then I make a decision based on the information...sometimes the round number is stronger, sometimes
the Fib and sometimes the S+R. In this case I saw the 1.5650 as a magnet, but it was also a strong enough
number that I didn't see it being penetrated (or even touched). Thats why I upped the buy price to 1.5660
rather than going with the 1.5650

MESSAGE FROM JACKO 146

It is 1.00am NY time Wednesday July 9 and the market is at 1.5689

I was stopped out at 1.5652 at 11.30am NY time for a Break Even trade. It was a low blow from the market
especially as it dropped only marginally under our stop loss.
Not the best result , but not a loss (and remember the advice of that impoverished gentleman from
Omaha...Rule 1 do NOT lose money).

This 1.5650 is certainly a magnetic for prices

I have had one or two enquiries as to why I didn't take profit when I was in front. The simple reason is that IF I
had taken profit at, say, 1.5700 for a 50 pip profit, I would have accepted a

1 : 0.5 (risk: reward) rate.
Or put in another way, IF I said to a casino that I was prepared to bet big (remember, that even just one
standard contract in Forex is equal to USD $100,000) and I was prepared to lose $1 for every 50c that I won,
they would be lining up the Lear jet, the Rolls-Royces and the 10 man servants to make sure that I got there as
soon as possible.

Having said that, I am still keen to get back on board at around the 1.5650 mark.

Edit 1.30am NY time Market has just quickly popped up to 1.5716 in thin Asian trade.

I expect it to retrace back later in the day.

Edit 3.20am NY time I am a buyer at 1.5660. (I am not sure that we will see 1.5650...but I could be
wwwrong!!). However, as always, exercise discretion. If you are watching the market and are prepared to see if
it will go lower than my buy feel free to wait to see if you can buy at a better price.

Edit 6.45am NY time I had my orders filled after the market bottomed at 1.5658. Market now at 1.5708 The TSL
is 100 pips. The trade is now playing itself out

Edit 10.35am NY time Market has moved as high as 1.5744. The TSL has now been moved to 1.5644

Edit 12.05pm NY time As stated in Email 3 below "I ... think that we are near a break upwards away from this
area soon". However after this current trade runs itself out there will be more opportunites to buy back around
the 1.5700 area again in preparation for the next run up towards 1.6000+. As I have said before, I believe that
this market will come very close to 2.000, MAYBE even by the end of next year

Emails

Email 1

Jacko, I may be spending too much time in front of my PC LOL so I took EU profit of 92 pips (1.5742 -1.5650)
when EU hit some resistance for some reason.Good strategy So, instead of using TSL. I felt almost 100 pips was
a good trade when the price up tick stopped temporarily.Ok Is this okay knowing I may miss the next leg up?As
long as you are prepared to (possibly) miss the next leg Also, I waited for dip to round number (1.5700) to get
back in and have my TSL 100 pips from high (1.5653 = 1.5753 -100). That is an agressive trading style Is what
I've done, a "no-no" in your strategy or accepted as a personal preference to lock in profits which is okay? It is
not a no-no, it is just a more aggressive trading strategy that went well this time

Email 2
sometimes when I'm at the computer when the price hovers around the SL point (like yesterday), I sometimes
can't help myself and go like: "Come on! Just hit my stop loss already, stop teasing me like that!" LOL You are
not alone...it is a feeling of "fate" sometimes. But then I have had trades that turned around one or two pips
away from my stop and then roared into profits. So you just can't tell


Email 3

How did you sense the 5660 buy entry with price not falling to the 5650 area? I just didn't think that this was
going to come back to hit such a strong number.. .I also think that we are near a break upwards away from
this area soon

Uncanny. Very nice. Hmmm, yes
Now let's see how this trade plays out. Yes

MESSAGE FROM JACKO 145

It is 3.25am NY time Tuesday July 8 and the market is at 1.5687

We are now at the critical time in every trade where the market has retraced marginally from the high and
everyone starts to jump up and down and says to take profits before it falls further.

Now this MAY happen...or it may not, but once you make a decision to tamper with a trade in the heat of the
trade, then you have introduced a bias or emotional aspect to trading that is detrimental to your trading in the
long term. (It introduces the woulda, shoulda couldas into your trading and that can really mess with your
head).

I can only tell you that from experience in markets over many years (because I am very old !!!), that on
average it is much better to stick with your pre-entry strategy for the best results in the long term.

Edit 6.00am NY time Market has moved up to 1.5722. The previous TSL at 1.5652 is still in place

Edit 10.30 am NY time Market at 1.5660. Market has declined to near our Break Even point. Surprisingly, a very


bad housing number had a less than expected upward effect on the Euro so we may be taken out at our BE.
That would be disappointing but the alternative is to have no strategy and no discipline. Then it just turns into
gambling. My Stop Loss at 1.5652 is still in place.

Edit 11.30pm NY time My Stop Loss was activated. We closed the trade at break even. I have been for a walk,
looked at market again and am making my next decision. Will be back very soon

Emails

Email 1

Now I would like just ask if you have a specific rule on how you determinate the 50% retracement and on what
time frame do you look for it. The longer the time period, the stronger the price guide.This also applies to
Trend Lines etc. It is then up to your discretion as to how much risk you want to accept.
For example, if you are using daily Fib you are using conservative risk. If you are using 5 minute Fib you are
using an insane risk...LOL
I like the 4H and daily Fib and trend lines, anything else is too erratic and tends to be noise


MESSAGE FROM JACKO 144

It is 4.15 am NY time Monday July 7 and the market is at 1.5621.

My orders at 1.5650 have been filled. The market has since risen 2 pips to 1.5652 then moved slowly down. My
TSL is currently at 1.5552. (1.5652 -100 = 1.5552).
The trade is now playing itself out.

PS I hope everyone in the US had a nice 4th of July holiday. Now get back to work !!...LOL


Edit 11.55am NY time Market at 1.5645. Market not doing much. I am just letting the trade play out. Am off to
bed for an early night (it is 11.55pm local HK time) The TSL has now been moved to 1.5572 (1.5672 -100 =
1.5572)


Edit 8.30pm NY time Market at 1.5722. I had a nice time earning "passive income" in the last 8 hours (I was so
"passive" I was asleep...LOL) The TSL has now been moved to 1.5652 (1.5752 -100 = 1.5652), so we are
now in a "free" trade.


NOTE I have had one or two emails stating that they cannot access the JacksonCitadel Managed Fund site. (It is
temporarily closed because I was asked to close it until we have finalised all the details). But the setting up is
progressing very well. (Mark is doing an excellent job with our advisers!!!)


Emails

Email 1 (This is a great email....new traders take note of highlighted section!!!)

Hi Jacko!I have not been writing you many email(mostly due to my poor english, I guess:), but I do read the
blog every day and trade according to the Trend Trading Plan(almost), religously. I am now in profit, even
thought my account size isn′t really big. But money is money and I am certainly in this for the long haul. So I′ll
get there. Of course you will...
Before I got this tremendous opportunity to join you and this group, I was daytrading. That was how I lost my
first 10 000 euro. Ouch !!! (I hate the yens:) (laugh...we have all been there with some business or
another...don't talk to me about Options...LOL) Just like you have said a number of times, daytrading is too
emotionally draining. I have meet a few people that seem to profit from trading on a intra-day basis, but it
never made much sense to me. I just could not build my confidence in that trading style. Moreover, I didn′t
manage my money the way I have read in so many good books about trading. I didn′t even use a stop-loss.
Aaauuuughh !!!!!! Bad move. Yes

I found the ForexFactory thread about a year ago. After that, I started to trend-trade. In a moment of hubris, I


decided to short the market in october(AGAINST THE TREND!!). Uh oh... I not sure, but I think a few others also
saw this spectacular opportunity in the eurusd pair(it can′t go any higher, it has too come down at least 500
pips, right?). And that was how I lost almost 10 000 euro more. OUCH !!!!
But those days are gone. Good I like to think of it as I actually bought an education. It did cost quite a lot(both
money-wise and emotionally), but I also learned something from it. You just HAVE to protect youself from
those "that-will-never-happen"-scenarios. YES !!!!

Anyways, I am really, really glad that I am part of your group, Wayne! .......Most people would not even dream
about taking the time to form a group of "forex-newbies" and read and answer a lot of emails each and every
day! That is a rarity in this world. All I can say is, thank you so much! Thank you
And by the way, if you and Mrs. Jacko ever go to Stockholm, you know who to call:) Definitely

MESSAGE FROM JACKO 143

It is 11.40 am NY time Saturday July 5 and the market is closed.

The market closed at 1.5697. As outlined in the previous Message my buy order at 1.5650 (from 10 days ago)
was missed by 4 pips. However, I am hopeful of a fill of my order early in the coming week. (I will be really
miffed if I have missed it by 4 pips!!)

Weekly Review.

Even though I didn't take a trade this week, I am not having any 20/20 hindsight regrets.
I would not have bought at 1.5750 level early in the week.
Having seen the market slowly rise to 1.5847, then correct down 71 pips, then resume the rise to 1.5908 I
would not have "chased" the market as I was expecting the "inevitable" correction back to the trend line.
That correction back to the trend line (on Thursday) brought the market down to within 4 pips of my buy
target that has been in place for some 10 days, so I am disappointed that I didn't get hit.


I am now looking for a fill early next week.
So the strategy and targets are sound, we just have to wait for the market to open and move down.
Having said that, the 4H trend line (from 1.5302 on June 13) has now moved up to around the 1.5695 mark. but
I am still keen to get a bargain at 1.5650...It has just missed 1.5650 at 1.5654..but I think we may get one more
hit at it early next week. (A 50 pip move under the trend line is not statistically significant at the current
volatility levels).


MESSAGE FROM JACKO 142

It is 1.15am NY time Friday July 4 and the market is at 1.5716

Happy Independence Day. !!

My buy order at 1.5650 is still there.. After dropping off a cliff for a 238 pips fall (from 1.5908 to 1.5672) we
were a touch unfortunate not to be picked up at 1.5650.

The speed and severity of the fall back to the trend line area is again a reminder that ALL traders should
ALWAYS have a stop loss in place.

The European traders may try to "play" with the market today but the US is closed today and after such a big
move, they may try to take it back up a little.
However, I feel that we will get set at 1.5650 early next week.


Edit 6.45am NY time The market is at 1.5685...I might get lucky tonight (as Mrs Jacko often
says...LOL)...Getting closer to 1.5650


Edit 10.30am NY time Market has spiked down to 1.5654......It has just missed my 1.5650 at 1.5654..but I think
we may get one more hit at it early next week. (The market is as dead as Julius Caesar for volume at the
moment)

On an other issue, I have received a couple of replies regarding the proposed Managed Fund.
I have sent the following email to each of you but, given my appalling computer skills, I will post it here in case
anyone did not receive it and thinks that I am just being rude in not answering your email.

Thanks for your email re the proposed Forex Managed Fund. I apologise for the delay in responding but I have
been asked by the Fund Management company that is assisting us to establish it, to not answer any
correspondence until all the details have been finalised.

Having said that, I am quite happy with the progress to date and expect the Fund to commence in early August.
I will notify you as to all the details as we get closer to the opening of the Fund.

PS I have also temporarily closed the JacksonCitadel website until all the details have been finalised.

MESSAGE FROM JACKO 141

It is 1.40am NY time Thursday July 3 and the market is at 1.5873

As mentioned yesterday, we now have an A-H trade waiting to be activated at 1.5918 (see Message 95). We
maintain our policy that we leave no soldier behind.

I am hoping NOT to be triggered because I am still keen to buy at the retracement to the 1.5650 support line.
However, a rule is a rule, so if it hits 1.5918, I am bought.

I also remember (not that long ago) that the market was at around 1.5500 and everyone was proclaiming the
death of the Euro bull, and that it was heading back to the 1.4500 and even 1.3000. (I even have a bet with
lilmoe from ForexFactory made some weeks ago that it will hit 1.6000 before it hits 1.4500...LOL... I don't think
so, lilmoe.....this market is going to 2.000 !!).

Edit 7.21am NY time Market at 1.5889 and marking time for NFP data

Edit 10.00am NY time Yes, thats what I wanted to see...a crack in the market. Long overdue!!! Market at
1.5741 We will get our opportunity to buy some low priced, bargain Euros in the coming week. My A-H fallen
soldier was not picked up. So he stays lurking as a Reservist to back up the main troop force that will be
activated at the 1.5650 level.

Edit 11.35am NY time. Just got this email: "Look's like we may have our orders at 1.5650 filled sooner than we
thought!" I have been waiting for a week !!!!

Emails

Email 1

So NFP was better than expected, and the 25 point rate-rise was already priced-in? That's a pretty laaaaarge
move at US open! A long overdue correction... back to 1.5650 trend line???


Email 2 (I really enjoyed answering this email)

Hello,I find your message 141 today a little difficult to comprehend.Given that euro is now on a very strong
uptrend and you are expecting it to go as high as 2.000, why would you still expect it to retrace back to 1.5650?
Which comes first? Do you really expect it to swing from current 1.5900 down to 1.5650 and then up again to
2.000? Is that the scenario you are painting? Yes

Email 3

The A-H trade seems to be a dangerous trade at these levels.You are right but the A-H has helped me so many
times that I now just trust it as a mechanism.
It is the A-H rule that I follow...it has got me out of trouble many times in the past and I now just trade it
even if I dont particularly want to. Many times I have not been keen on taking an A-H trade, but it has been
the best trades in 95% of cases, so I now just stick with the rule. ....And maybe I was just lucky today

MESSAGE FROM JACKO 140

It is 1.30am NY time Wednesday July 2 and the market is 1.5811

I have had a number of replies from members of the groups to indicate that a managed fund may be a viable
option. I will continue working on it and have further discussions with the Fund Managers that have offered to
assist in helping us set it up and help us with all the procedural matters. However I don't want to block up this
site with discussing it here. (Some of the emails that were sent to me had complex questions that I want to
think carefully about, so bear with me if I don't answer the emails regarding the Fund for a short while)

When we are further advanced, I will notify each of you here and give you access to another site which will be
our "home" site for all the details of the JacksonCitadel Fund.

So, let's get back to our trading here !!!

I am watching this market slowly creeping up to over the 1.5800 mark but it has been slow and painful. Even in
hindsight, it's not a market I would have invested in so far this week. The only real point of entry has been
1.5750 and that was simply too high (Read "too risky") for me to be a buyer. I have to wait for the market to
dip further back towards the trend line before I am interested.
Todays Lesson is to remember the words of that poor destitute guy in Omaha (who even remembers his name??)
who said that the first rule in investment is Do Not Lose Money. The second rule is Never Break Rule 1 .......
Oh, and I think his name is Warren Buffett

Edit 6.45am NY time The market has moved up but then dropped back under the 1.5790 mark. I am still hoping
for a retracement back to the support line

Edit 10.00am NY time ADP Non farm Employment Change was much worse than expected and has pushed Euro
up. (However ADP MFEC has been notoriously inaccurate in the past). It is very annoying watching this market


slowly edging up, but it is a long way from its trend line and I am not buying at this level. Surprisingly for all
the huff and puff in the market, it is still only 100 pips above the only real entry point (1.5750) this week. And
it would have been a brave person to call 1.5750 as the low.

Edit 11.50am NY time Most of you will remember that I have an A-H trade at 1.5918 (see Message 95). We
maintain our policy that we leave no soldier behind. It may be triggered later today.

Emails

Email 1

I'm truly impressed with your approach to FX trading and have now taken several profitable trades using your
method. Good I've also missed a couple of good trades because I was away from my computer for a few days (In
pursuit of happiness,romance….) The market will still be there when you are finished with such foolish
pursuits...LOL , a laptop is definitely a passion killer. LOL
On a serious note your method certainly teaches patience and I find I'm much more relaxed about my trading,
analyzing then waiting for the trade to come to me rather than chasing it. Yes..I am now calling it a "place and
wait" method I'm curious as to how one would make a full time job out of how you trade, as at the best you
could only make a very part time job out of it given its simplicity. Last trade was 71 pips X USD $2000 per pip.
It may be part time ...but why work harder

I suppose my curiosity was sparked by the many posts, made on various forums, about the desire to "become a
fulltime" trader. If full time trading means glued to your screen 8hrs a day trying to decipher a whole lot of
indicators then I wouldn't want a bar of it but a couple of trades every 10 days or so using your method is the
way to go in my book. The power of this business is the Liquidity, Leverage and Rapid Compounding

Email 2

Ciao Jacko, Currently I'm out of the market ( except for few intraday trades, I love that) and I'm waiting for a
good long entry as you said.
Well, last week was good for me.I enter at 1.5479 stop out at 1.5576. +97 good
Than I got in one more time at 1.5603 stop out at1.5730. No bad + 127 Excellent Thanks Jacko! Reading the
blog, waiting for you,writing to you is helping me a lot. I feel like I'm in touch with my guide, my mentor all the
time, and that let me feel comfortable.
With the close of yesterday I'm seeing too , a possible retracement to 1.5600 area, but you saw that before
me!! haha! Was the Resistance barrier ( 1.5760 1.58..) thereason of your thought? Partially, but more than that
is that the market is due for a retracement

In the meantime I'm thinking to go short under 1.575 ,if I get the time to be in front my pc. What do you think?

A Counter Trend Trade.. AAAUuugghh...Noooo !!!....LOL

Sometimes I think I'm sick, I spend 6 hours or so a day watching the screen and I would stay more, but I've got to
go to work. It is a passion !! Just don't let it get out of control. You must be in control

Email 3

Man, looking at the charts, I can see price doing new higher highs and higher lows. I am wondering if this
market should go down to 5650 area? Maybe, as the other member wrote to you last week, 5700 is a very good
entry price BUT with a little more risk.Yes

I would like to know your thoughts about this, does this make sense? Yes, I you are making great sense, you and
I are thinking alike... You are just prepared to take more risk than I am on this trade.


MESSAGE FROM JACKO 139

It is 3.45am NY time Tuesday July 1 and the market is 1.5748

As discussed in the previous message I am waiting on a retracement to 1.5650 for a buy (1.5650 is a round
number, is sitting close to the trend line from June 13 and multiple lows in June, and is a 50% fib from 1.5467
to 1.5835).

However, we have not been lazy and doing nothing!!!!!!

As outlined in a previous Message, I have been discussing establishing a Managed Forex Fund with Mark and a
couple of his ex-customers who have been wanting to trade with me. Until now, I have not really been
interested. However, the opportunity to nurture some of the talented traders in the group and open up
opportunities for them in the industry has been the swinging factor. Also, the idea of a high performance
boutique fund excites me.

Before I take it any further, I have outlined the basic conditions in the website here;

http://jacksoncitadel.blogspot.com/

I would really appreciate your comments and whether you see it as a valuable resource for you.

Please send all information to its dedicated email address jacksoncitadel@gmail.com so as not to block up our
existing emails.

Edit 8.55am NY time We have had a good response from the European and Asian members (who were sent the
SMS text message earlier today) to the Managed funds proposal. See emails below for some quick answers to
most of the questions so far

Edit 9.45am NY time Market finally starting to crack down...market at 1.5772

Edit 11.15am NY time Market cracked down as low as 1.5733 and has now recovered slightly to 1.5760. Still
heading down to 1.5650 in the short term

I have a buy order in at 1.5650

Edit 8.10pm NY time Hmm...market is hanging around the 1.5790 mark. There have been no real good price
points to have been in this market so far this week. Too high at these levels to buy.

Emails

Email 1

Hi Jacko,
Thankyou for taking the step to create a managed fund. Here are some questions from the investor point of
view:

1. Is there a minimum deposit required? Probably USD $5,000
2. Is there a minimum time to invest? i.e. 1 yr, 5 yrs Probably only three months (it is forex, not stocks)
3. Can we add to the initial investment? yes at certain times? or anytime? yes
4. Can the quarterly return have the option of being taken or reinvested? yes
5. Can the full deposit be withdrawn or part of it, at say one month notice, if the money is needed due to
unforeseen circumstances? yes
6. One variable is exchange rates between USD and AUD. (The member is Australian) Everything would be
transacted in USD and converted at your end (bank)
7. Any clues about US taxes? I got no idea. For foreign investors does the US taxes come out of the returns first
so all I need to do is the Australian Tax side of things? The Account will be based here in Hong Kong where
taxes are minimal. We also have one of the group looking at the potential costs of alternatively setting it up in
Singapore. Both have comprehensive rule of law and have low tax rates

Email 2

OK, now to the serious questions:

1. What does Mrs Jacko think of it? She is used to me building businesses. It is something I have done all my life.
She wants me to hire an office manager to look after the organisation of everything...that's all.
2. Why would you take the best business in the world and complicate it? It is my "nature" to grow any business. I
can't help myself
3. What do you get out of it (emotionally or any other way)-apart from 30% of excess returns? Setting up a
good business is always a good buzz. Also, the group members have shown their enthusiasm and passion for this industry. If I can help some of them further their careers in this business, that is good. ( Mrs Jacko and I never
had children, so I like to help people in business...provided that they have shown their commitment and
passion.)
4. 'Secondly, we see it as a means of giving some talented traders the opportunity to trade under the umbrella
of a Managed Fund to gain experience. That experience will hopefully give them greater career opportunities
with other Fund Managers and Hedge Funds.' -I don't understand this:
A). You say that you will be trading it.Yes, I will definitely be in control
B). Even if the talented traders do trade it, if they trade according to your signals then that is meaningless so
far as a track record is concerned. Not at all, they will be learning from me And if they don't trade according to
your signals, that won't happen!! then that is misleading the investors I agree.
5.'Thirdly, to establish a small boutique, high performance fund for members of Wayne Jacksons groups.'-Again,
I don't understand this:
A). Do you anticipate that members of the 2 groups would want to invest in the managed fund? If they
wish...this is not open to the public. I also don't want it to grow too big.
B). If so, does this mean the end of the mentoring of the 2 groups? No!! Definitely not !!! I enjoy it waay too
much !!

Email 3

What a great idea to pool as all together and really take on the market! Hmmm, that is not the intent. The
intent is to provide a service to some people who have asked me to manage their funds
I am very interested in what you are presenting but have the following questions:

1) What will be the minimum required in USD? see email 1
2) Can additional funds be added later, if so at what notice? see email 1
3) What other costs are involved besides the performance fee e.g. management fee, exit fee? Nil
4) Will there be any work involved from me as an individual, if so what? No
5) How soon after month end will performance results be published? the next working day
6) If 7.5% is not achieved in a quarter, am I correct in assuming that no return is payable? No...the 7.5% is paid
7) Also if 7.5% is not achieved you mention that $100k USD will be topped from private resources, will these
resources include myself? LOL...No. It is from MY resources...that is why I want to keep this small.
8) What notice period is required to withdraw funds see email 1

Email 4 (Last one)

I do have one suggestion that I encourage you to take to heart. I know you said you want to keep this fairly
small scale, as things move forward there will be much temptation to abandon that premise. Be careful not to
let it get out of control. I will definitely have an upper limit You know everyone (well, many) will want in
sooner or later. This will be capped in time of the fund being open for admission AND there will be a cap on
the size of the fund, to minimise my total risk to a manageable level
Please be careful. Risk control is everything May The Trend be With You. Thanks

.