MESSAGE FROM JACKO 436

It is 1.00am NY time Thursday August 27 and the market is at 1.4250

Our short trade yesterday from 1.4340 to 1.4210 resulted in a another pleasant profit of 130 pips.
I am again looking to go short, but am prepared to wait until it goes back up to our Resistance line (see Mondays blog) which is now sitting at around 1.4325-1.4350.

Edit 3.00am NY time Market is at 1.4250. The market is in no-mans between the Resistance line and the Support lines outlined on Monday. It has hit the 50% Fib line so the probability is that it will bounce upwards from there. I am waiting for it to return near the Resistance line and will look to SELL it down again

Edit 8.00am NY time market is at 1.4280 The market is still in no-mans land on the 4H charts, sitting between the Support and Resistance lines (as outlined on Monday). . As expected it has bounced off the 50% fib Line of 1.4210 yesterday and has moved back up. I will be waiting patiently at the 1.4350 mark to slap it on the head again

Edit 12.05pm NY time Market at 1.4266 The market is just gyrating around the 1.4250 mark. Not much happening. I will wait for my 1.4350

Emails (Three good emails)


Email 1
It's amazing how it exactly touched the resistance line and then went back down...No...thats the point...it is NOT amazing...it does it all the time...Or at least with a very high probability...but sometimes it stops just short or just long so you have to be prepared to buy or sell it "near" the Resistance line
Which goes back to my question, how to know when to enter... seems to be a sort of bet each time: Of course it is...EVERY investment is
- if I don't wait for the market to go back to the resistance line I risk selling at too cheap a price. Yes
- if I wait for the market to touch the resistance line I risk never entering the market...Yes
Besides, it may also touch and break out... how do I then know that it's a false break out? I guess I don't...Thats what SLs are for
I'd still be interested to know how you watch that bloody market to be reasonably certain you are entering and AA+ trade...You are never certain. But I am a strong believer that the market is going down soon, so my AA+ trades are trades in the short direction...the trades where we are going long are the ones that concern me

Email 2
Can you give one of your more backward pupils a real cat-sat-on-the-mat explanation as to why we're selling south based upon the 300 period 4HTF please.. I think that the market is moving sideways in a range between 1.3850 and 1.4350 since early June and is currently at the high end of that range. Now IF it is moving sideways, it means that the bull run up to early June has run out of steam,so it is heading for the basement. For those two reasons the northern train looks a bad probability to me

Email 3
I am really enjoying trading with you, it is working out well, I am making money and will shortly be increasing my lots. Excellent
A very important question from a nervous trader like me! How do you hold your nerve until the market hits your target? To fine tune your trading, watch the times that the market "turns" especially just before London opens and just before US opens and just before US lunch....It helps in a situation like yesterday and reduces the panic
On this last trade the big drop on the 1hr chart bottomed out at 1.4215 (very close to the 50% at 1.4210), it then retraced back to 1.4243 a scary 28 pips in the wrong direction. How do you avoid the temptation to close out while the going is good, instead of hanging in for the big prize? I thought that it would come back down to my 1.4210 because it was still early in the morning US time and it usually reverses just before lunch