I was wrong, but I made 60 pips…

Not often I’d admit publicly that I am wrong, but here’s what happened…

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Bernanke and gang (FOMC) decided to leave the Federal Funds Rate decision unchanged once again during the Tuesday August 10 meeting, but the real surprise came with the bearish tone over US economy growth and the decision to reinvest principle payments on mortgage assets and maturing debts… This sent demand for U.S. Treasury soaring and helped the equity market recover immediately just
as predicted in my analysis…
I took a live trade in my Mastermind Mentoring Trade Room and made 63 pips in less than 30 minutes as you can see in the video below (recorded live).

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You might be wondering after you watched this video, what went wrong? Well, my forecast after the FOMC meeting was for stronger EUR/USD to possibly test the 1.3300 area, but if you’ve been following the market, you know that after a brief touch around the 1.3220, EUR/USD has been dropping like a rock, and at the time of writing this analysis, EUR/USD is at 1.2860, or 360 pips from the high!

However, this is where having a plan and using good money management kicks in like a life saving parachute. Even if you are wrong initially, if you just follow my trading method, you can still end up with as much as +60 pips off on this trade…

Of course I wasn’t TOTALLY wrong, I knew eventually EUR/USD is going to drop down to even below the 1.1800 area, and I guess weak earning reports in Europe, China’s moderate economic figures, and FOMC’s weak outlook for the U.S. economy spooked the market and pushed both USD and JPY to their best levels in a long time…

This is what I wrote in my Upcoming News on Sunday:

Another important observation is the fact that USD is still a safe-haven currency, but the market reacted though no one was told about this. The immediate outlook sounds bleak for the US with the job’s number worsening, but floating funds into Euro and JPY is just not the answer. That’s another reason I believe we are on the verge of a major reversal soon… Statistically speaking, after several weeks in a row of USD weakness, the chances of a rebound is more likely than ever. A small news could spark snowball effect of profit taking and rebalancing of portfolios, therefore I’d use extreme caution at following the current trend (Sell USD) this week.

So what’s coming next? I believe there is a huge opportunity at going LONG on the USD/JPY pair at above 84.70 for a long-term trade.

Thanks,

Henry Liu

About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

You can find more information about me on my Google Profile.

Comments

  1. Yup yup this guy was amazing. Thats what I called as a trader, not just be a comentator but also doing what he just said and thats the point. By the way he quiet honest even when he make a mistake, he tell us too. That also proof that the market was not always can be predictable. Thats why I will stick with this man. I tell you what. I have 176$ in my account and I will try to make it 5000$ in a month. with this man newsletter and indicator Hopely I can make it comes true. if I can make it another 8000$ I can MERRIED on december 19 this year. And I sure to God I will send MR. Hendry wedding invitation.

    Meet some one just like a destiny. So dont waste it.

  2. Hi Henry,

    You are great in forex, I will have love to join this your programme, but i will not be able because am with macro account seize. Let me try to raise money, i must join you in your trading in subsequent time.
    Please in this huge opportunity at going LONG on the USD/JPY pair at above 84.70 for a long-term trade, where do you suggest the trend and take profit of it will be?
    Thanks for your hospitality.

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