The Perfect Trade

Earlier this week, I put in a trade. I was not sure how it would come out, but it turned out to be great. I called it the "perfect trade". I sold EUR/USD at the top, and I am sad that I am considering to close the trade. It made me 300 pips in just few days.



The image of the trade.







I have not closed the trade yet, but I am heading now to the account to close it or to put a stop.

I decided not to play the game of going in and out trading it on shorter time scale. Instead I held for multiple days. It paid.

Conclusion: If you hold longer, you will make more. More pips, with less effort, and less time spent in front of a computer, and less problems with your trades being stopped out.

Long live the dollar (when I am holding it). And long live any currency you are currently holding long of.

Before I leave you, visit these two sources of information:
1) a free trading course that you may find useful:

Click to Read Forex Trading Course
2) A lesson that was useful in the perfect trade discussed in this note:
Click to Read Lesson


Happy trading,

Some Say "If Oil Gets Smacked Down, Stocks Will Run". Is it true? Read to find out the answer!

I was visiting a trading forum yesterday. The forum is well known hanging place for the elite (at least they call themselves that way) traders. The topics covered everything about trading including stocks trading, futures trading, options trading, and forex trading (currency trading).

A thread was titled with a question, and the answer to the question. The answer given in that thread is wrong (and is the reason I am writing this note), and what was suprising is how many traders/participants seem not to have understand that the answer is wrong.

"If Oil Gets Smacked Down, Equities Will Run" that was the title. (For those not familiar with the term "equities", it is a fancy way to refer to buying stocks).

One would think that the above is correct and straightforward. But it is not. Probably people think the above is correct because they may think that if oil prices go down, it will cost cost businesses less to operate. Yes this is true, but the market is not about how much it costs, but how much money is made from a business operation.

In a word, the market cares about earnings. When the market is rising, it is predicting higher earnings.

But go back to the stock market over the last few years, and you will find increasing earnings are mainly from commodity related businesses.

If the price of oil goes down, it means that businesses in the energy and oil sectors will make less money (meaning their earning will decrease).

And with decreasing earning, the price of stocks will decline. That is called a bear leg.

The stock market is counter-intuitive sometimes, even for traders who put themselves among the elite.

By the way my current vision over the next one and half year is this: higher dollar, lower stock market, and lower commodity prices.

I will explore why the above vision is likely correct, and how to play that vision out for maximum profits.

Let me know what you think of this post by writing your comments, and views.

Stocks Professor (Sometimes I will sign as SP).

PS: I will be glad to share with you some trading secrets that made me good money. email me at stocksprofessor@gmail.com . Emails with empty body are fine. The important thing is that once I have your email address I will be able to respond to you.