MESSAGE FROM JACKO (MAY 2008) 111 - 123

MESSAGE FROM JACKO 123

It is 1.38am NY time Friday May 30 and the market is at 1.5536

Update below ..Plus some new emails

I am currently out of the market and looking to get back into the fray. The market has made a low of 1.5484 and if it wasn't a Friday, I would be sorely tempted to have small buy at this level. However I will refrain until I
see where it is early next week.

On a personal note, Mrs Jacko is taking me on our annual holiday to Europe (except that she has decided that she wants to re-visit Australia after our great time there a couple of months ago). So instead of going to Europe
in June when it is nice and warm, we will be in Australia for two or three weeks.
I will still be trading and keeping the blog up to date, but I have compromised with Mrs Jacko and have agreed to no email answers for two weeks from this Monday June 1 (NY time). I may try to sneak one or two if I get
the chance but don't count on it....LOL

Edit 11.00am NY time Market has moved up to 1.5540...I think I will be looking to get back in again early next week. Will see what is available next week at around 1.5500

Emails

Email 1

Now regarding trend, I know you define it in a simple way but how do you know when it's over. If it breaks 1.5350 on the daily I will start looking at the possibility of a trend change. If it breaks 1.5283 I will start
considering it even more strongly I mean what does it take for you to say the trend is no longer up. This one element bothers me the most because I'd hate to keep buying when the trend was no longer positive. So how do
you deal with these times? I just keep it in my mind...but I also have heard, during the last couple of years, many people at many times in many places say that the trend was over. They were wrong

Email 2 (This email is from one of the full time traders that is in the first group)

After reading the blog update, I'm adding to my mail sent a few hours ago.

I've been trading the FX market for quite some time and now I do it full time -no, not because of Jacko ;-)
I constantly see people getting disappointed whenever something "less good" (since I'm an optimistic, I prefer this expression to the word "bad") happens in the strategy they are following. I guess people are eager for a
Holly Grail -a successful trader who is right 100%. As far as I know, there is no such thing.

After reading the blog update I'm sure some people emailed you complaining and questioning some moves. I guess that's the price of going public. The pressure must be awkward but I guess it is caused by the emotional
connection you have with your "Turtles"!!! If in fact you received complaints, pls. don't give them any more importance than they deserve -after, all they are just an opinion! (most times from people who just got into FX
and don't realise that the package also includes bad days -just like in a marriage?)

It's funny how people mind's changes quickly. I was just talking to one of your group members who joined recently (he is a newbie). After earning big time in your 263+63 trade he couldn't wait to get back in. I told him
that he shouldn't be too excited since Jacko is sometimes wrrrong ;-) even though the last trade was so great.
Whenever we get in a trade we must be prepared to loose all 100pips (not meaning that I like it). After the two last trades he was disappointed. It took me 1 full hour on the phone to cheer him up and explain him what
you've already written over and over again -I guess I'm really becoming your "disciple"!?!
He has a difficult time understanding that one must squeeze the good trades in order to get enough float for the bad ones and that risking the same % in good and bad trades is also essential -not risking more % because
you just won and not risking less % because you just lost -he increased his exposure because he had just won big time.
 
Whenever we enter a trade it can in fact go ether way although we try to take an informed guess. We also don't  have a clue on how much profit we will get. We only know that the worst thing that may happen is that we
loose the whole 100pips "bet"!

At the end of the day, the important thing is:

1. try to be right at least 50% of the times
2. let the winner trades roll as long as possible and not close them too early (at the same time limit the looser ones)
3. always risk a fixed % of the capital no matter if we just won or lost in the last trade -one never knows when the next silver bullet is coming
Depending on the trader, obviously, these rules may have different weights. Personally, I give them all 33.33% (the 0.01% I leave it to chance... LOL)

Bottom line of this mail is that I think that you are a great trader and the lessons learned in your blog are priceless even if one sits on the sidelines during ALL your calls. Thank you for your kind words. I appreciate your
sentiments. I will post this to the blog to allow the group to see the thoughts of another full-time trader

Email 3

I have just read the blog and I agree with the views of the poster, I think that the expectations of a few of the members of your group are unreasonable in so much as they look upon the service as purely a "Signal Service"
which of course it isn't. Actually there have been no real complaints...it is more a case of some in the group venting at their own trading mistakes...I am really impressed with the maturity and intelligence of the members
I consider myself very fortunate to have found such a talented and motivated group of traders

Email 4

I am a newbie to the group and looks like already I have received some valuable lessons.

My first trade went very good, 200+ and the add-on also went well. I did bump up my percentage starting on the second trade but for me it's still only $1 a pip. (Small account) Get in and let it ride and then add to it. Let
the TSL take you out.My second trade, got in, went up some and then crashed and burned. The TSL saved me. Always use stops. Not all trades will succeed.

Watch for A-H set up to set up fallen soldier.If it falls the 50 pips, place order for fallen soldier.Fallen soldier is picked up and soon dies again. Oh well, time to re-examine the market.Walk away from the market for awhile.
Do not get mad and jump back in thinking I will get even. Get away and clear your mind.It's ok to not be in the market all the time. Welcome to the Pleasure and the Pain of Forex trading !!!...It is similar to a normal
business... with its ups and downs..... but this one is on steroids...and at warp speed..........The best business on Earth if YOU control the speed of the game


MESSAGE FROM JACKO 122

It is 2.38am NY time Thursday May 29 and the market is at 1.5591

My A-H buy trade of 1.5659 ws picked up at 7.45am NY time. It then rose a miniscule 4 pips above that to 1.5663 before slowly decaying in price to a low of 1.5575.
I am dangerously close to having my A-H trade stopped out at 1.5563.

Edit 9.30am NY time As unfortunately sometimes happen, my A-H was killed... for a loss of 96 pips. I am taking the rest of the week off to re-look at this market. I am certainly not in a rush to get back into the market at
the present time.


Emails

Email 1

a question concerning the AH strategy. I know that you are constantly considering alternative ways of improving your strategy and that was the main reason why you temporarily changed your TSL to 100.
If the volatility of the eur/usd has increased, "forcing" us to use a 100TSL, then why do the AH soldiers get triggered by only 50, which is the same number already used when the volatility was much lower? Maybe you
already discussed this in the blog but I don't recall reading the justification. I felt that the 100 pip gap would expose us to the event that we would have too many A-H trades NOT being established because of the larger
gap...I will review that decision over the weekend

Email 2

In Email 1, in Message 118, you said that "This could fall as low as 1.5550 back to trend line, ...and .... I am back to basics...that means no more CT trades and no over-trading. Only the prime buys are the target now"
What made you change your mind and buy at 1.5700?

Good question. I suppose that it comes back to the reality that I am a trader...if I don't trade I don't lose money, BUT I don't make money either. It is always a matter of measuring risk and evaluating the opportunity
at any given time. So I attempt to think logically:

1. I don't believe that the trend has changed yet
2. I thought 1.5700 was a reasonable enough retracement point to risk a trade. (I was wrong !)
3. I can always buy in at lower levels (as long as I still believe in Point 1).
4. I will be watching the 1.5500 (or lower) mark as a possible buy but I am not in a rush to jump back in right now
In reviewing the last trade, after re-reading my rationale for the trade (see Message 120), I am happy with my reasonings...The thing is mis-judged was the strength of the 1.5650 resistance line.

Email 3

I just wanted to say thanks again for your unselfish help and encouragement over these many months and during your personal heartache. I started trading a practice account about a year and a half ago. I went live
with $10,000 in June of last year and promptly found out I didn't know what the "F" I was doing. By the time I stumbled into Forex Factory and your thread I was down to $3000. By the time you offered to mentor a group I
was at $2193. Since then with your calming influence and trading advice I have moved the account back up to $6821. Not too bad since only November '07. It would have been even better had I not traded against the trend
several times. However, there has always been one major problem. Money management. I was risking a bundle on each trade.Way over a safe 2-5%(Yes, I could have changed to a mini or micro account. But I couldn't see
getting excited over a dollar a pip. LOL). I am now going to solve that problem. Beginning in June I will fund the account with an additional $100,000. I will then be able to trade with sane rather than insane risk. It will
take some time to grow the account. Increasing the number of contracts as the account balance allows. I will be patient and trade the complete plan including risk management.
I thoroughly enjoy trading Forex and at some point in the future I am confident that I will be able to devote myself to trading full-time. Your patients and generosity will no doubt change many lives for the better. Quite
a legacy. Thanks for your exceptionally kind words. You are a Gentleman

MESSAGE FROM JACKO 121

It is 1.00am NY time Wednesday May 28 and the market is at 1.5708

Update below

As stated below, the expected volatility did arrive.
After coming very very close (to one pip away) to having my orders filled at 1.5700 after the New Home Sales and Consumer Confidence reports were released at 10 am NY time (Mark was melting the phones to the brokers
again...and got progressively more apoplectic as it bounced into the 1.5730's).
However, I left it to him and went to bed. (Courtesy of a bad prawn from the beautiful sizzling prawn stir fry I had for dinner at the local restaurant)
I was finally filled at 1.5700 at around 3.00pm NY time.

Now just letting the trade play itself out.

Edit 10.00am NY time Market moved as high as 1.5759, so TSL moved to 1.5659. I was then stopped out by the TSL at 1,5659 for a 41 pip loss.
If market had gone 50 pips lower to 1.5609 it would have triggered the A-H. However, it only went as far as 1.5611, so no A-H has been triggered.

Edit 11.45am NY time Market has hit a low of 1.5608 (this market is getting within 1 or 2 pips of the price points every where). An A-H buy at 1.5659 has now been placed. I am now waiting to see if the market will rise and pick up the A-H trade, or continue to fall..

Edit 1.20pm NY time Market has jumped up to 1.5644 and is now back at 1.5627...still waiting for A-H to be picked up...Am off to bed

Emails

Email1

So, regardless of what some of the "experts" are saying, I'm still with you on long term dollar weakness. I even saw on Forex factory today someone (one of the advisors/contributors) claiming the dollar had bottomed!! And is his name Bernanke or Trichet??...If not, then he has no idea either So, given that we believe that 1.6 is the eventual goal, why are we still pulling out with trailing stops? Because, one day, I could be wwwrong !!
Maybe it would take a few weeks, but wouldnt our profits be maximized if we held for the long haul?? Possibly, but remember we sold out at 1.5750 and bought back in at 1.5700 so we are 50 pips better of than if we had stayed in
Or is the volitility what's stopping that? Volatility allows us to sell then buy back in cheaper
I guess if it climbs up eight times, its best to be on board each time......Yes

Email 2

I have nice Trailing stop E.A. thats works with pending orders, would you be interested or maybe you have one already. You just type the ticket number of the limit order in and it triggers when the trade does. LOL...I am a
techno-moron PLUS i don't trust computers...I like doing it manually, It makes me feel that I am actually doing SOME work

Email 3

Do you get frustrated on days like today, your order is in for 1.5700 and you see it came down to 1.5701 and then go back to the 1.5730's? Yes, but nothing compared to Mark...He gets so vocal, I can almost hear him from
America...I rang him on mobile just after 10 am NY time and he was ranting on the landlines...if he had been screwd in the butt (and thats using the more polite term than he used) as much as he said he had, he would
now be "rectally ruined"...LOL
At one point he had one broker on hold and one copping the heat...and he didn't even know which one he was yelling at... (he needs to learn to control his emotions, I think...LOL)
Or do you just it back and smile? lol I was laughing so much at Mark that I near wet myself


MESSAGE FROM JACKO 120

It is 2.20am NY time Tuesday May 27 and the market is at 1.5794

Updates below

I am looking for a low risk position to get back into the market. After a nice profit last week and a nice break from having any open positions, we should all be refreshed and ready to go forth and fight the Forex dragon.

There has been a number of emails asking if we should wait for a drop to the 1.5650 level. (On the basis of the 4h trend line). I am suggesting that maybe that may be too low now.

After looking at the charts, I think that the market has realised that the Euro is heading back to the 1.6000+ mark. So, I think that the short term retraces may be quite small, so I think that we need to find a nice safe
spot to get back in. (If I am wrong, our beloved A-H soldiers will dig us out of trouble later).

I consider that 1.5650 will be a very strong support so it will be our safety net. I am therefore prepared to buy at 1.5700 (less than where we closed our last position and then had a review of the market) or less

I am a buyer at 1.5700. Order placed and now waiting to see if market will drop to my level. If it doesn't then we may miss a trade. (That is a cost of NOT taking a risk. But it is a cost that I am prepared to accept.)

Remember, the Euro is regularly volatile by 100-150 pips.

Edit 5.25am NY time Well the market dropped like a rock after I posted the post above and just as I started to send the SMS messages. I was actually sending them on the ferry to Macau (Isnt it great technology that I can
be sending messages through the air to all over the world while sitting on a ferry?? You younger traders may not appreciate this technology but to an old guy who saw the birth of mobile phones and the internet, it is just
amazing stuff!!).
Anyways, it hasnt hit my buy point of 1.5700(gnash, gnash...it has been as low as 1.5726) but I think there may be more volatility to come.

Edit 8.40am NY time After hanging around back at the 1.5750 mark for a while, I am getting more confident of getting my 1.5700's.

Edit 9.15am NY time The market is showing strong selling before the New Home Sales and Consumer
Confidence reports. Some of you may wish to avoid catching the "falling knife"and wait to see where it goes to
before buying. I still have my orders in place

Emails

Email 1

Geez this being patient and waiting is still the hardest part, for me anyway but I can see the value of it and I am grateful that you are drumming that into us. Just remember that you are building a "lifestyle" business...one that you can have anytime in your life You can't sustain a lifestyle if you "need" to be glued to your computer platforms 24/7. And as you get older, you certainly won't want that type of life.
Besides, the stress of that type of trading will either kill you or totally turn you off trading

This as I am learning is the most important part of the whole exercise.
We are grateful for the opportunity to look over your shoulder and see how you handle the market movements.
I am sure that you feel as annoyed as anyone when some of these trades don’t work out but you stand back relook at the situation before making an informed decision with any new information as it comes to hand. Yes,
of course

My wife is trading so much better on her account than I and the main reason is she uses patience and it pays off with dollars banked simple as that LOL, one of my other female traders was commenting the other day that she
was only making 200% annual return...She thought she needed to accelerate her trades..LOL

One question that we do have at the moment in regard to the AH strategy now that we are heading up again that stop out that many would have had back at [in our case] 1. 5918 do you still have that ready to go again?
Yes


MESSAGE FROM JACKO 119

It is 3.30am NY time Monday May 26 and the market is at 1.5772

The market is too thin to trade today, with both the UK closed for Spring Bank Holiday and the US closed for Memorial Day. A good day to spend some time and some of our earnings from last week on our loved ones.

Back tomorrow

Emails

Email 1

You are the first trader I know that can put 200 Lots on a trade; then go on a holiday to Malaysia to buy fake watches; and then come back home and close 300pips profits all in a few days !!!! WOOOW….that is just
awesome – I’m totally respect you mate !!!! You have proven to me that you are the real deal and not a BS trader. I’ve seen all your calls and profit in real time. I just love how you are not stuck at your computer and
actually have a life outside of trading. In this age of technology ( and remember that I am a TOTAL techno-moron!!) there is no reason at all for a medium term trader to be watching a screen 24/7...that is just a sign of
a lack of balance in lifestyle....
And I keep saying that trading like a screen jockey is an UNSUSTAINABLE lifestyle in the longer term.
I want all you guys to understand that this is a "business" that you can do and enjoy until the day you die (hopefully from a heart attack from an extraordinary big win)...don't burn yourself out...this is STILL the best
and simplest business I have ever seen !!!!!

Have fun counting all the money you have made this week. Have a great weekend with Mrs Jacko (hope she bought some sexy lingerie from Thailand………haha) !!! Thanks again for everything. Thanks

Email 2
Thank you so much for guiding me through my first successful trend following trade. :D :D Excellent
I learn from you that successful trend trading requires alot of patience and discipline. We gotta pick our spots and wait for the market to come to us. I think it really help my trading alot, watching a professional trader sit
on the sideline while daytraders get chopped up by the intraday noise. Thank you so much !!! Oh, btw is the $28 watch you bought in Malaysia still functioning fine. Yes.!!! it is !! You should have bought one for Mrs Jacko
too. LOLOLOL.
By the way, do you go to Singapore often. I noticed the sms you sent me is from Singapore's country code. Yes it is a Singapore phone that is on international roam...Singapores technology is the best...plus when I started the first group I was in Singapore looking at property and I just put the first members into the Singapore phone. And I was too lazy to change over, so now the phone is just for the group.


MESSAGE FROM JACKO 118

It is 1.25 am NY time Friday May 23 and the market is at 1.5725

After a successful week of earning 263 pips on the first set of trades and 53 pips on the second set of trades, I think that we deserve a nice break for the weekend. It was a good weeks work.

Next week will bring us more opportunities. I love being a Forex trader !!

Emails

Email 1

I'm wondering about a new long at 1.5650? That's the 50% retracement from the move back down to 1.5500 up to the high last night of 1.5813. A new long at 1.5650 is interesting, but there is no rush for me to jump straight
back into the fray

Or, are you on the sidelines waiting to see how far it falls? This could fall as low as 1.5550 back to trend line, so Yes, I want to spend a couple of days with a clear head and a clear order book to see what is the best plan
of action. Plus it is late in the week and I prefer to wait until early next week to buy.
I am back to basics...that means no more CT trades and no over-trading. Only the prime buys are the target now.


MESSAGE FROM JACKO 117

It is 2.15 am NY time Thursday May 22 and the market is at 1.5771 (Market has moved down to as low as 1.5756 and is now rising again)

I have decided after watching the market (and while answering emails) to move the Trailing Stop Loss to 1.5750 (50 pips below the high of 1.5800).

Edit 10.00am NY time Went to have a 15 minute nap and woke up 5 hours later. My trades were closed out by TSL at 1.5763 (50 pips below the high of 1.5813) for profits of 263 pips on the first set and 53 pips on the
second group. A good weeks work !!

PLEASE READ THE BLOG BELOW...lots of good emails (done in the Asian time zone)

MESSAGE FROM JACKO 116

It is 11.40pm NY time Wednesday May 21 and the market is at 1.5778

My 1.5500's are still performing nicely with a 278 pip profit. My TSL has been adjusted to 1.5700 (thats 100 pips below the high of1.5800).

Similarly, my 1.5710's are performing nicely

The 100 pip TSL still applies to both of them. However, if the market bobs up above 1.5800 again, I may adjust the TSLs to 50 pips to lock in a bit more of the profit.

But at the moment, I am now just letting these trades play themselves out.

Emails

Email 1

I'm now 160 pips in the money on the first trade from 1.5500, good and I have an buy stop order at 1.5700, both with 100 pipTSL. I'm already learning that it is so much less stressful to pull the trigger with the long-term
trend and a big stop.Exactly, though I may start to look at reining in the stop to 50 pips later No more worrying aboutpinpointing entries at the exact bottom with a short time frame chart andthen trying to milk every last
pip out of it and get out too early. too hard, too taxing on the emotions This is so much simpler. Interesting observation...daily price structure from May 8to May 21 looks really similar to the structure from Feb 8 to Feb
21...weird coincidence, huh? Ran up a thousand pips last time. I live in hope!!...LOL

Email 2

Just like to ask you why exactly did you enter at 1.5500? There is no exact SR zone, trendline or congestion break, nor Fibonacci. Move above 4 indecisive highs was at 1.5576 close price. From that breakout yyou
pullback down to 1.5500, why not for example 1.5450 as this was hundred times touched level in last couple days? 1.5450 was an incredibly strong resistance level, but the market was starting to move upwards, so I didn't think it would come back that far again. Therefore, 1.5500 became the buy zone. (Also, 1.5450 was a great resistance level if I was wrong on my 1.5500's. I considered that if I was wrong on my 1.5500 and the marketwent down 100 pips through such a strong resistance level that I was totally misreading the market) I would consider this level as strong support and likely good area for long. 1.5500 was round psychological number, does it mean you picked this round number against stronger chart support? Yes

Somewhere I read that you were trading commodities before moving now solely on Forex. Could I ask you why after many succesfull and profitable years in futures you moved to just one single pair on Forex? There is huge
leverage in Crude Oil, Natural Gas, indicies, bonds, currency futures and many others as well, so leverage is probably not the main reason, correct? In Hong Kong you can trade Hang Seng, which is risky "animal" too with
big enough leverage if you want to. I like currencies

Or was the main reason liquidity for 50 lots you trade now? I trade 50 lots per broker...and I use 4 brokerages I mean there are nice trendy markets in futures and if you know them well, why are you leaving money on the
table please? Forex is more reliably trendy than any other market, and Eur/USD is the trendiest of the forex markets over the long term. And I don't have time or the inclination to "chase" different markets. I like the Eur/USD !!

Email 3

I think I remember reading on the blog (unless I really misunderstood something) that when you're in the middle of a trade, it's a bad idea to start thinking things like: "Should I close this now? Should I let it run some more?"
Because then your emotions get in the way, and I kind of identify with that. Is that how you always trade, or are there circumstances in which you do stop your trade before it has played out? Yes, I am really quite
unemotional about this trade...it is in profit and I cannot lose, so I can be a bit more dispassionate about it. No market goes up forever, and after a solid rise there is usually a pullback (unless the market is really strong)

And another question, I'm just curious but what makes Mark think we should take some profits at 1.5750? I'd really love to know! Mark is always more cynical than me about market sentiment..he is always saying that no
market goes up indefinitely. He like to lock away profits more quickly than me

Email 4

Have you ever considered buying 50% retracements on the 4hr chart allthe way up until you either get stopped out of the most recent trade,or price makes a lower high? That seems like it could work and wouldget you in at
good prices on the way up. We are currently reviewing such a strategy sent in by another member...it does appear interesting. The downside is that it tends to reduce the initial trade sizes

Email 5

I have a question about MOMENTUM. How may I identify the momentum in a market? What kind of indicators must (and their interpretation) I use or is it described by PA? If it is going up fast it has momentum....no need
for indicators etc, just look at the chartsI appreciate a lot your response about this. A light would be enough.
Don't complicate it, trading is simple. Controlling your emotions and doubts are the hard parts of the business

Email 6

At 12:45PM you said "Mark has suggested that it may be worth taking some of the profits off the table at 1.5750. Some of you may wish to consider his advice."
I get the feeling from recent price action that some of the volatility has gone out of the pair -maybe a lot of stops have now been cleared -so I thought that instead of taking profit I would tighten the trailing stop to 50
pips. I have now locked in 250 pips profit ( price is at 1.5800 and stop at 1.5750 at 8:50 NY time). We think alike...I agrree...see blog...but I would like to see it pop up above 1.5800 again before I pull the TSL back to 50
pips

MESSAGE FROM JACKO 115

It is 9.30am NY time Wednesday May 21 and the market is at 1.5738

Updates below

My 1.5500's are performing nicely with a 238 pip profit. My TSL has been adjusted to 1.5673 (thats 100 pips below the high of1.5773).

As outlined yesterday, I had a buy order in for another 100 contracts (50% of my original buy) at 1.5700 which has also been filled. Didn't get all of them in the first rush up but have them all now at an average of 1.5710.
The 100 pip TSL applies to them as well.

I am now just letting these trades play themselves out

Edit 10.45am NY time Sorry if I have been a bit slow on responding to emails today...I have been a little preoccupied with our trades and am really tired from our trip away. I answered all the backlog of the emails from
the weekend yesterday. Please accept my apologies for the delay today. Will answer them asap

Edit 12.20pm NY time. I am off to the land of zzzzz's. Mark is in control tonight.....too much at risk. I am in at USD$3k per pip so I want the TSL's updated. Will finish emails tomorrow (HK time..By the way, Hong Kong is
exactly 12 hours ahead of NY)

Edit 12.45pm NY time. Mark has suggested that it may be worth taking some of the profits off the table at 1.5750. Some of you may wish to consider his advice. (I am definitely off to bed now!)

Emails

Email 1
Hope your time away has refreshed you and that Mrs Jacko hasn't emptied the ol wallet too much : ) Actually, I am really tired at the moment...but it is getting late here (midnight)

I asked these questions in the forum as I knew you were away, but now that your back I thought I would ask you directly with regards to adding to positions... Would we use the the same kind of method as when we place the
initial trade? For instance on the 1hr chart the nearest whole number to the 50% fib of the most recent low and high is 1.5600. Perhaps look for an entry to add around this area? If it had dropped to 5600, I would have looked
at adding, but I also felt that if the market had the strength to hit 1.5700, then I felt that it would continue to go up. I felt that after the stagnant market last week that a big move was on the way. But I wanted to see sustained strength. Also, it was sufficiently deep in the money of my 1.5500's to minimise the risk of loss on the total sets of trades. S I was quite happy to place a "set and wait" order at 1.5700

Or would a more mechanical approach for instance add at 100 pips profit, add at 150 pips profit? I am currently looking at a more "defined"strategy like that but we are still working on it

How large percentage wise in comparison to the original entry would this addition be? Currently I use 50% of original size

Is the add-on trade a trade in its own right i.e. will it have its own A-H Yes if needed and SL? The TSL will be exactly the same as the first trade (think about it)

Look forward to hearing from you, also I emailed a question previously about brokers, I wasnt asking you to endorse or recommend a broker,just some clarification on whether you use an ECN broker or one of the "bucket
shops", so please dont feel you have to name any. I use 4 retail brokers....I think ECN's are over-rated

MESSAGE FROM JACKO 114

It is 8.00am NY time Tuesday May 20 and the market is at 1.5640

I have just returned from an excellent couple of days in Kuala Lumpur, Malaysia. Our baggage, including my laptop, also had a lovely holiday. Unfortunately our baggage enjoyed it's holiday in Thailand. (Mrs Jacko was
sooo disappointed that she had to buy all new clothes...).

I think that yesterday was the first day that I have missed posting on the blog...it felt very unusual. I enjoy my daily postings....

My trade of 1.5500 was triggered at 10.30 am NY time yesterday and I am currently in profit by 140 pips.

The Trailing Stop Loss is currently set at 100 pips and I am letting this trade play itself out.

Edit 10.20 am NY time Trailing Stop Loss has been adjusted to 1.5580 (locking in a minimum of 80 pips).
Will be looking to add to my position (with 50% size of first trade) when/if market hits 1.5700 (Market currently at 1.5641)

Edit 11.05am NY time. (11.o5pm HK time) Off to bed... Oh I forgot to tell you...did I get a good deal in KL ???
!!!...I have just looked up the watch I bought (a black Rado)....it retails for about USD $3200...I haggled and got mine for $28... what a bargain !!! ....
The Exclusive Agent (a street vendor) assured me it was genuine !!! He was just down on his luck and had to sell his prized possession (it was a family heirloom , he told me) ...and you will never guess what...he had three of them !!!
I am feeling really chuffed that I haggled such a great deal....I couldnt wait to show Mrs Jacko what a great bargain I got...But she got jealous of my bargaining prowess and tried to tell me they were fakes !!!! Can you believe that anyone would try to sell me fake watches !!!......LOL


Emails

Email 1

I'm sure you had a nice week end with your wife....and back to work .....
Here is one analysis I found on forexfactory at post 12816:

http://www.forexfactory.com/showthread.php?t=51248&page=855

I'm sure you'll be interested in reading it and tell us what is your opinion regarding the future of our beloved pair EurUsd. I read this earlier on DailyFX where it was originally posted....I still see 1.60+ in the very near future...the USD is a very sick currency Personnaly I'm wondering very strongly if we'll see future bullish rally up to 1,60....We need your light.... The Euro bull trend has not reversed yet !!!

Email 2

Thanks for the continued insight in your trading -I keep laughing thinking back to one of the seminars I went to in the UK offering the 'secrets' for a special -only available today -price of over £3000. I wonder what I would
have learned -a moving average crossover I bet. Probably !!

Apologies if you have had this already, but could you elaborate on your approach to adding to positions. Do you look for dips etc in the same way or do you just add afterr 100-150 pips. Yes, though I am a bit more conservative today, I have put next buy at 1.5700
Do you apply a 100 TSL in the same way? Yes


Email 3

Nice to be back in the trading mode. And a profitable mode it is!!! It is good to be back to my basics...no more overtrading...no more CT trades...just basic TT

I know your opinion on the USD. My thought is with the European economy set to do poorly in not so distant future. That being considered in, when we start getting bad european news do you think e/u will get hammered
down, hard and fast? Nope....the USD is still in serious trouble....it will take a looong time to remedy


MESSAGE FROM JACKO 113

It is 9.30am NY time Saturday May 17 and the market is closed

Note: This message is a copy of an update from yesterday

The market has now shown itself. It is the resumption of the uptrend. It is now apparent that the 1.5283 at 9.00pm May 7 is the low.

Looking at the (NY time) Daily and 4Hourly chart, after that time, there have been 5 higher lows (5448, 5419, 5395, 5366 and 5311) but there were also 4 lower highs (5569, 5565, 5546 and 5521) which meant that the
market was compressing, and therefore the predicting direction of the next move was too risky to base a trade.
(I don't like 50/50 chances !!!)
However, the break above those 4 highs now moves the probability of a larger upward move into the very high percentage levels.

I will be looking now for the next dip in the market to buy. Given the volatility in the last 6 months, I would expect a 100-150 pip dip in the market sometime next week. This will be the opportunity to buy. I
would be looking at around the 1.5500 mark as my buy target

Will be back on Monday . (I will actually be in Kuala Lumpur in Malaysia until Tuesday for a couple of days shopping and sight seeing with the wife).

I am a buyer at 1.5500 with a 100 pip Trailing Stop Loss


MESSAGE FROM JACKO 112

It is 12.40am NY time Friday May 16 and the market is at 1.5475

I think that they may take this for another run in late Asian trade again today. Seems to be a pattern. The 1.5450 mark and below seems to be the hint to go long but cap the buy and take profits at 1.5500-1.5525

Edit 9.15am NY time Ooooh..Look. The market is at......1.5471
This is almost becoming bizarre...It is as if the market is trying to go up and the ECB keeps hitting it on the head at 1.5520 (+ or -20 pips). Sooner or later one side is going to give up

Edit 10.33am NY time The market is testing 1.5550 after terrible Consumer Sentiment

Edit 5.10pm NY time The market has now shown itself. It is the resumption of the uptrend. It is now apparent that the 1.5283 at 9.00pm May 7 is the low.
Looking at the (NY time) Daily and 4Hourly chart, after that time, there have been 5 higher lows (5448, 5419, 5395, 5366 and 5311) but there were also 4 lower highs (5569, 5565, 5546 and 5521) which meant that the
market was compressing, and therefore the predicting direction of the next move was too risky to base a trade.
(I don't like 50/50 chances !!!)
However, the break above those 4 highs now moves the probability of a larger upward move into the very high percentage levels.


I will be looking now for the next dip in the market to buy. Given the volatility in the last 6 months, I would expect a 100-150 pip dip in the market sometime next week. This will be the opportunity to buy. I
would be looking at around the 1.5500 mark as my buy target

Emails

Email1

I had some thoughts about the euro this morning and wanted to share and see what you thought.

1. We're still in a long term uptrend.Yes
2. In the medium/short term we're in downtrend targeting the 1.5200 level.Yes
3. When price bounced up from the 1.5283 level and began to range (asopposed to a strong move back up), that combined with a rejection ofthe 1.5600 level was a pretty clear sign of more downward movement. If you were to take short term range trades your bias would thus be to the short side EEeeekk !!!! (I have not done this, but as I've been watching the market over the past week this is what I've been thinking)Yes
Does this sound like a good analysis to you? I think I'm starting to"get it" from a big picture point of view. I'm now able to discount a  lot of the day-to-day movement as "noise" and not sweat missing any supposed trade opportunities in favor of waiting for price to get tothe more significant longer term levels. Still patiently waiting for my buy order at 1.5200 to get filled. This market has been stagnant for two weeks with just "churning" of accounts. This market tears up the impatient traders. Mark and I have been talking to some brokers....this has NOT been a good week for the short term traders

Email 2 (This is a message from one of the few female traders...she is a lovely young lady)

I hardly ever email you but I just wanted to say that I am really not convinced that the 100 ts is a good idea.
Just look back at the last few moves up, from wherever you got in (!) whether you had a 50,60, 70, 100 and at times even 150 stop it just hasnt been enough. Why give back so much profit? Eur has become so volatile, but the 100 ts isnt helping. Last trade for example, we got in at 1.5450, I had a 50 ts and you used a 100...so my loss was 20 pips and yours was 70, then my Ah was triggered and I made 85 pips...I know your AH will eventually be taken but still, it just seems too large a risk in this ridiculous market. What are your thoughts...Maybe, too small a sample to make a firm decision either way
BTW THANKS for turning me into a calm thoughtful trader, I have almost doubled my account since we started last November 100% in 6 months ...Excellent...slowely but surely does it 200% per year does sound TOO slow, take care


MESSAGE FROM JACKO 111

It is 2.50am NY time Thursday May 15 and the market is at 1.5520

The market is having a bit of a run in thin late Asian trade before the London open.
I am out at the moment (thank goodness for internet cafes) but will be watching the market during London session to see if they want to extend this rally up.

Edit 9.44am NY time Market at 1.5493 If you look at the 4h chart you can see that this market is starting to compress itself between 1.5400 and 1.5550. It has been doing it for two weeks now. There will be a strong
move soon as this tightness gets decompressed, usually in a quick and decisive move. Maybe the last spike downwards??

Edit 10.21am NY time Market at 1.5471... Oh No !!! The market is heading back again to.... you guessed it... 1.5450 !!

Edit 12.37pm NY time Aaaahhh !!!! Guess where the market is ????.....1.5450 !!!!


Emails

Email 1

Thanks for the reply, I'm trying not to over complicate things. That is a GOOD start
It was interesting to read the blog today regarding how much can be made with just a few pips a month, hearing this point helps with being patient. One of the key advantages of this business is the availability of leverage...therefore "relative certainty" is more valuable than "trading activity"

It's also good to see you're still confident about the 15200 level, I guess you've seen it all before and know what can happen. Pick the best point and let the market do the work, then onto the next.
Yes...but I could still be wwwwrong about 1.5200. But if I am, there will be another opportunity to trade soon...there is NO better business


Email 2

Just watching price action over the last 2 hours I get the distinct impression that the dead hand of the ECB comes into operation at 1.5550.
YES !!!! I think that they are being very subtle in their management of what was becoming the runaway Euro

Looking at all the positive data from Europe today indicating economic strength the current drop away from 1.5500 make no sense.
I get a feeling that the dam is about to burst up-wards. Maybe, but not just yet


Email 3

Man, that price doesn't like going past the 1.5540 Fib does it? They've got to be waiting for something -must be that slew of Euro information due tomorrow and whatever Bernanke is going to say.I think I might give Trichet a
call and tell him to hold off until 5/15 or 5/16 -just to make me look good! Ha Ha!!! I think thats where the ECB is using as a rough number to try to "manage" this runaway Euro and try to get some market momentum behind a push down.
But I could be wwrong

Email 4

I joined your second group fairly recently, started reading through the blog and well...just did not get it! No RSI, No MACD, No CCI, No MAs, No Stochastics, No nothing! Just 50% fib, longer time frame charts (8hr?! 4hr?! I
didnt know they did charts beyond time frames of more than 5 mins!) , S&R and maybe a few trendlines for fun.
I read through everything and just did not get it! This cant be a method! Theirs no bling bling, no ooo la laa!
No crazy sound effects or charts that look like they were last in a Star trek episode! This cannot work! That is just stuff used by Marketers to sell high priced computer"systems" that are so complex that no-one understands
it but also doesn't work....Forex is a market where people buy things and sell things...just like they did thousands of years ago

So based on this madness I sat down a couple of days ago and thought let me try this, so I got a 4hr chart set up and made a trendline, I noticed the next day that the trend line had been breached and that the market was kinda sideways drifting up. I kept watching the market move up until we hit a high of 5570, I used the previous low on 5/8 and drew my fibs. My 50% hit around 5425ish. So I thought lets put an order in at the nearest whole number (because that's what jacko says). I put my order in at 5400. I don't know if I just got lucky or if I'm following the method correctly, that analysis took me less than 2 mins. Thats about right...any more than that means that a brain has left the doorway and entered the room...DANGER !!!!

My trade is now in guaranteed profit with no real pain at all, am I getting it Jacko? It cant be this easy?! can it?!
All this time spent looking and learning random crazy indicators I feel like a silly billy called Willy! I want to ask you lots of questions, but i cant really think of anything to ask because its all so simple. Yes because I am just a simple man
Anyways seeing as I don't have any trading questions, did Mrs Jacko have fun shopping today? She ALWAYS has fun shopping !!!