Hi there 
I hope you had a wonderful weekend Before I go on with the review of last Friday, and the signal for tomorrow, I would like to tell you an interesting personal story, about what’s currently going on with the carry trade. Also, I would like to tell you a technique, of how you can attract LUCK into your trade. Yes, I said LUCK.
If you read all of my signals and emails, then you probably know that I sent a long email on February 15th, 2007, talking about how carry trades work in general, and the conservative mental state that needs to be set when you do a carry trade, I also told you that even though the GBP/JPY was down by about 1000 pips, I still expected a drop over the term of one year for a possibility of another couple thousand pips. At the same time, when the GBP/JPY was at 232.67, I told you that I went long on that pair, being ready to add if it went any lower. Then on February 20th, 2007, on the day that Japan was releasing interest rate, I suggested exiting all yen cross carry trades in case of rate hike, and possibly reverse them after the price settled down. Whoever listened, exited on that day, making well over 100 pips in profit, plus interest. I also exited. Then after the interest rate was done, and as the GBP/JPY started reversing, I took another carry trade position long, as I said in the email the night before, and exited with decent profit. Some people held on to that position longer, and asked me for good exit, and I said 237.00. As you know, the price went to about 237.80, and then the GBP/JPY collapsed in a few days after that. That’s not the story that I wanted to tell you actually…this is just to refresh your memory on what’s been happening with this particular position in the last few weeks.
Then last week, when the UK Manufacturing PMI was coming out, I gave a long on GBP/JPY to my forexdiamonds.com clients, at around 231.67, and we made good money, exiting at low 232.00s. Then I told people, that I am setting a limit order to go long on GBP/JPY at 231.00, and keep it as a carry trade. And that’s where the story that I wanted to tell you begins. I went to sleep for a few hours after that PMI number, and I was supposed to be in the room at 8:00 am NY Time to trade PCE report, and I had a dream of some Japanese guy that showed me a chart, where I saw GBP/JPY being between 222.00 and 223.00 levels. So as I woke up to trade the PCE report with people in my room, the GBP/JPY was executed at 231.00, and the price at that time was at 230.80 or so. We had a couple of hundred people in the room, and I told them about the dream, and I said that I am closing that trade, and I am going to stay out of GBP/JPY for now. Please look at the chart now, and see where GBP/JPY hit today…. Well…most people took a loss of -20 pips at 230.80, and avoided a much bigger loss by holding on to the carry trade. There were actually people that went short, and are very happy right now, based on that dream But I personally didn’t, because I have a rule to never short a interest positive carry trade, unless it’s a short term day trade.
So there are two morals of this story. If you ever have a dream, or a very bad feeling, listen to it. It’s part of being a trader. And second lesson, which is a lot more important, is that this is not the first time that I am getting LUCKY like this with having a dream. It’s happened before on several occassions with EUR/USD and GBP/USD pairs, and I told Rob Grespi about some of those dreams at the time, I just don’t feel comfortable sharing them publicly usually. But I am glad that I did share it last Thursday about this GBP/JPY trade, because I know, too many of my clients were long. I believe that there is only one way to attract such LUCK into your trader’s life, and that’s by donating at least 10% of your income, whether it’s trading income or another income. I do that every single week. I donate between 10% to 30% of all my income, and not only is it emotionally rewarding and I get to help people, but financial life has become very easy. I started doing that about 2 years ago, and since then my income has increased 35 times. Every month I make about 35 times more money than I made 2 years ago, and it’s still growing, and I believe it will always be growing. It is the #1 principle of financial success and abundance. Everybody who is a partner in Secret Forex Society is doing that. Rob Grespi is doing that. Rob Allen is doing that. Crazy Cat is doing that. My girlfriend is doing that. Actually, every single person that I personally know who is wealthy and happy, is doing that. And to you, as my client and my subscriber, I suggest to start contributing to honest charities in systematical way by giving a percentage of your income, and I promise you that the Universe will go out of its way to make you successful and keep you from as much trouble as possible, because the Universe or God has a goal, and it’s to always expand and grow, and by giving and sharing, you are helping it fulfill its goal of expansion. That’s all I have to say about that.
Let’s now talk about Friday. We had only one report coming out on Friday, and that was Canadian GDP, which didn’t hit my trigger, and was a no trade. I do still suggest that you watch the live trading video to learn how to trade this report in the future. Here is the link:
http://www.forexdiamonds.com/performance.htm
Rob Grespi is out of his mind. He made +631 pips on Friday!!! Yes, I am not kidding!! He took 34 trades, 9 of them were losers, and 25 trades were winners. The biggest loss was -16 pips, and the biggest winner was +97 pips. I absolutely insist that you go to this link to see the break down of every trade Rob Grespi did last Friday, and see a live trading video of every trade:
http://www.kingforexsignals.com/tradedetails/0307
Okay, enough reviewing Let’s now talk about tomorrow, Monday.
1. Monday, March 5th, 2007 (4:30 am New York Time) UK
We have UK Services PMI coming out of the UK for the month of February. This indicator measures the services sector in the UK. It’s expected that this number will come out at 59.0 or so. If the number comes out at 61.5 or higher, it would be good for the pound, so GBP/USD may possibly increase by 30 to 50 pips or more about pre-release price. If the number comes out at 56.5 or lower, it would be a very low reading, and GBP/USD may possibly decrease by 30 to 50 pips or so. If you can’t get in before the spike, I suggest not to chase this report. I suggest only getting in if you can get in within 10 pips of the pre-release price, within 2 minutes of the announcement. If you can’t get in at such price within the first 2 minutes, I suggest not trading this. I personally may be trading with less conservative triggers and be a bit more risky, but my job here is to give you safe trades.
2. Monday, March 5th, 2007 (10:00 am New York Time) USA
Then we have ISM Non-Manufacturing Index coming out of the US. This report is kind of like Services PMI for UK, except it’s for the US. It’s expected to come out at 57. If it comes out at 60 or higher, it would probably be good for the dollar short term, so GBP/USD may possibly decrease by 30 to 50 pips or so. If the reading is at 54 or lower, it would probably be bad for the dollar, so GBP/USD may possibly increase by 30 to 50 pips or so. I definitely wouldn’t chase this report either, if you can’t get in before the spike, I would probably try to get in within 5 to 10 pips of the pre-release price, and not more than that.
3. Monday, March 5th, 2007 (7:30 pm New York Time) AUSTRALIA
We have Australian trade balance coming out, which is expected at -1,100 million. This is a little bit risky report, so the triggers in my opinion, have to be big, in order to be safe. If the number comes out at -2,000 million or more negative, it would be probably good for Australian dollar, and AUD/USD may possibly increase by about 30 pips or so. If the number is at -300 million or less negative, it would probably be bad for the Australian dollar, and AUD/USD may possibly decrease by about 30 pips or so. If you can’t get in before the spike, I wouldn’t suggest chasing. You can try to get in within 10 pips of the pre-release price, and if you can’t, then let this trade go. We also have Building Approvals coming out of Australia at the exact same time, which is expected at 0.5% or so. If there is a conflict on that number by at least 0.2% or more, I would stay out of the trade altogether.
That’s all for tomorrow Remember, tomorrow, I’ll be doing scholarship special for Secret News Weapon. If you wanted to get in, make sure you are on the waiting list, and wait for an email at 11:00 pm New York Time sharp. Here is the link to join the waiting list: https://www.secretnewsweapon.com/buyit.html
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