The 11th Commandment “always use quality data”

OK.  So maybe that’s not exactly true.  But if Moses had been a trader he would have snuck that one in there.  Rather than write about data …. we’ve created a video blog for this one. 

It’s only three minutes long but should give you a good idea of why investing in data is a smart idea.  Do you want quality trades?  Better make sure your numbers are accurate ……

PS.  In the narration I say its Nasdaq data, it isn’t.  It is in fact S&P.  I also make a horrific error in my pronunciation at the end.  I would re-record it but TBH … it’s too late at 1130pm.

Two Hearts

Two hearts, believing in just one mind
Beating together till the end of time

Those are lyrics from a Phil Collins song, for the movie “Buster”, which was, of course,  about The Great Train Robbery.  But it could just as easily have been written about the movements of the S&P and USD/JPY.  These two instruments are highly correlated – in fact, the USD/JPY is almost a proxy for the S&P.  

Have a look at the chart below.  On here you can see the chart shows the S&P500 with the USD/JPY overlayed in blue as a line chart showing the closing price of USD/JPY over the same time period. Notice how they move very closely together.  

Why is this useful information?  Two reasons.

First off, be very careful if you see a chance to trade both of these at the same time.  You could double your profits of course – but your losses will go the same way.  Be patient and trade the chart that looks the best.

Secondly.  If you have a smaller account and trading an eMini is a little rich for you at $50 a point, then trade a smaller amount of USD/JPY.  You’re going to be able to get in on the moves, but with a lower level of risk.  And there is nothing wrong with that.  Consider it a way to build up your account until you are ready to trade the eMini or just keep trading forex. 

Either way, EnigmaSignal will give you high-quality trades.  And plenty of them.

eMini and GBPUSD profits

Not a lot to say today.  The markets were a lot quieter.  I actually didn’t trade all day as I has so many meetings and a blinding headache.  CNBC was a great meeting though, and I look forward to being a regular commentator on their active trader show.  I think we can really add value to that.  I was sitting on a couple of positions from yesterday to see if they really made gains.  They did OK (see below) but didn’t pull up any trees.  So.  A short blog.  The new training course (completely free) launches soon.  That should be exciting.  Other than that … a very quiet day.

A first video attempt …

We’ve had a number of people asking us to come up with a series of training videos.  So that is exactly what I have spent a few hours creating.  It’s the first attempt. 

There will be a series that cover long trades, short trades, breakout trades, rotating markets, trading stocks, indices and more …… over the next few months a complete library will be assembled for trader educationn.

But for now, there is only one.  We have pitched it at beginner EnigmaSignal traders but have included a little bit of the theory of trading.  It is about 15 minutes long.  In our opinion that is 15 minutes worth spending.  Trading is a business.  Invest the time.