In my comment on my last 2 Forecasts I stated that:

• I did not like what I saw in the currencies.
• After a sell-off as we saw on Monday you use the day after as confirmation for how to trade. I also said that a nice rebound had occurred by end of day

Wow, I must have had a crystal ball!

So lets explore why (or maybe how) I made these statements.

I am very open through the blog with how I trade and how I make my decisions. In the past I immersed myself 24/7 in reading every bit of news, listening to talking heads, following my trades through the night, looking for different strategies, mixing up my account with many different philosophies, and in a nutshell just being overwhelmed.

I soon discovered that this would lead me to an early grave. So things had to change.

Fast forward to now. In the Forecasts you receive every night, and with my simple Daily Chart set-up, you are given everything that I use to make good trades. I look at the numbers, check my event risks, check my chart, decide on a trade and move on.

But my mind is working, looking, observing while I am doing this. Many of the currencies (euro, pound, can) etc are at all time highs or close to it. While the US dollar is struggling, equity markets are also chugging to all time highs. You don't have to do any great analysis to say to yourself we are due a correction or a retracement. Also risk tolerance, (which wavers back and forth and can almost be gauged by the equity markets) has a huge impact on the markets.

If I read the newspaper during the day I may read the business section. I might read some articles on my site etc. I try and absorb what is going on the way I might follow a pro sport. I have a good news feed that I will read for market re-caps. I am "aware" of my "surroundings" when I trade, but only to the extent of giving me a back drop for the forecasts. I have enough knowledge of currency moving world events to bore any dinner party.

With all this I know the following:

1) Nothing goes on forever without stepping back up or down.
2) Once a quarter (my theory) a big event will happen to start a nice long run. You can either get killed or benefit. I trade tight with the forecasts until this event happens, then when it does, use the forecast to push deeper into profit.

So 2 things happened for me which formed the basis for my statements. Currencies were high, and the Forecasts were going back and forth every night instead of up, up, up, up or down, down, down. "High prices plus "see-sawing" Forecasts = big drop" for me. Then when the drop came, you wait a day to trade, or make smaller, tighter trades. You see if is this a BIG drop, or just an adjustment. If you used a conservative stop, you would have been wiped out only to see a rebound. (Please read blogs on stops)

I know many of my subscribers still blindly trade, and because of this will get frustrated and blame the Forecasts. So this is what you need to do.

1) do not over trade the Forecasts
2) do not be underfunded
3) the riskier the pair, the more money you should pad your account with. (Exotic Yen pairs riskiest, followed by usd/jpy, gbp/usd then kiwi, loonie, then euro, then swissy)
4) Understand how to use stops.(read my blogs) Stops will wipe you out quicker than anything else.
5) Print out all forecasts and note which pairs hit target (50 -75% of predicted pip profit is a hit)
6) Visualize with the daily chart.
7) Make note of how many days in a row something hits
8) Be aware of your surroundings
Establishing these habits will serve you well.

If the Forecasts and my blogs are just something else to confuse you, move on until you can trade with them with a clear mind. I know the Forecasts work. But they only work if you are not doing 20 other strategies at the same time and are prepared to be passionate about your trading. The flip side of get rich quick is get poor quicker. The Forecasts are not a get rich quick scheme. They require a learning curve which can be mastered through the use of demos and observation.