Hailing
from Thailand, the July King of the Mini
managed an impressive 363% gain in his account!
Download his trading statement to see how
he did it, and read a breakdown of his best
winning trade below!
The
King of the Mini Contest awards cash prizes
to the top five traders with the highest
percentage monthly gains, who also get
bragging rights for their respective countries!
|
|
|
 |
|
|
|
|
Standing |
|
Country |
|
Name |
|
%Gain |
|
Prize |
|
Trading
Record |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Over
$4000 in cash prizes
awarded monthly.Learn
more about prizes/contest
rules. Do you want to
be King of the Mini? Open
an Account.
|
|
|
 |
|
After falling for four
consecutive months, the euro finally gained
ground against the U.S. dollar in July.
The pair closed just 19 pips higher than
it opened on July 1st, but a range of 391
pips during the month of July presented
plenty of profitable trading opportunities.
The tragic events that took place in London
on July 7 naturally caused the GBP to weaken
against all major currencies, and the USD
was also negatively affected as the possibility
of similar incidents on US soil worried
traders.
Prices stabilized prior to the announcement
of US job growth numbers on July 8. Job
growth was disappointing for the second
month in a row, as only 146,000 jobs were
created in June. The poor U.S. job numbers
prompted a euro rally that lasted well into
the following week. Another key economic
indicator immediately reversed the euro
rally. In May the US trade deficit narrowed
to $55.3 billion, down $1.6 billion from
April’s downwardly revised $56.9 billion
trade deficit.
In a surprise announcement
on July 21, the People's Bank of China
said it would revalue the yuan (or the
Renminbi, as the currency is also known)
by 2.1%. The new system puts tight daily
limits on changes in the yuan's value
but could allow it to change substantially
over time. The news caused sharp price
movement in the FX market, particularly
in JPY pairs. As China transitions to
a freely floatable currency, the need
for the country to purchase the massive
amounts of US treasuries decreases significantly.
Since 18.5% of Chinese trade is with the
European Union and 18% is with Japan,
China will naturally be buyers of euros
and Japanese yen. As the currency peg
is moved from the dollar to a basket of
currencies (details which are not known),
China will sell dollars and buy the other
currencies in order to create the basket.
Because China holds the second largest
amount of US treasuries, the implications
of a diversification out of dollars are
huge!
Successful traders trade
with confidence; and this month’s
king of the mini was no exception. Confident
traders maximize their profits by identifying
low risk opportunities where they are comfortable
taking larger positions than they normally
would, and more importantly, they know when
to hold back and trade small.
Confidence comes with experience and focusing
on a certain currency pair expedites the
process. This may sound obvious, but a lot
of traders attempt to trade too many pairs.
This trader did trade a few pairs, but 73%
of his trades were EUR/USD. This focus leads
to a better understanding of when the pair
is most active, as well as where significant
support and resistance may lie.
Long
at 1.1929, exit at 1.2160. Total gain:
231 pips
Multiple trades in which this trader booked
100+ pip gains reflect a solid understanding
of how EUR/USD trades. After a great entry
on July 4 at 1.1929, the pair rapidly
climbed to 1.2200. Undoubtedly aware that
EUR/USD had failed to break past this
psychologically important level twice
towards the end of June, profits were
locked in at 1.2160 for a 231 pip gain!
MACD
MACD is a commonly used
technical indicator derived from exponential
moving averages that can be used in both
momentum and range bound markets. Like
RSI it is an oscillator plotted at the
bottom of the chart, and it shows the
momentum of the market relative to its
recent history. When the MACD crosses
the signal line, a trade signal is issued.
Notice that the indicator generated a
buy signal at 1.1916; very close to the
1.1929 entry.
|
