The Fed is meeting now and will be coming out with an announcement tomorrow. I want to be out of any day trade I am in prior to the announcement. This is a classic example of "buy the rumour, sell the news". There are those that believe the expected rate cut is priced into the charts right now, and the statement is as important as any action. So who knows where the spikes will go.

As I sit here writing my comments my swissy recommendation from Sunday night has hit profit, and my euro recommendation is flirting between 20 and 25 pips profit (goal 30).

Times like these determine what trader mentality you enjoy...Those 2 trades bounced between -30 and plus 10 (each) for the last 2 days. At one point today I was almost ready to cash in for a total combined profit of 30 pips. That would not have been bad, and kept me on track for my monthly goals.

But when I entered these trades I had a goal in mind. I am only 8 measly pips away and will now just wait to see what the Forecast says.

But why am I holding on to this trade instead of just cashing in? I believe in the ripple effect. Sort of like a law of energy. A currency in motion stays in motion from one world market to the next unless it is acted upon by a force greater than its momentum.

The force is either news, world events, trader events etc. or some unknown. This morning EST there was bad news out of Europe relating to the sub prime credit crunch. The swissy went up and the euro went down. I thought, O.K. here we go. Then this morning US news came out bad. Complete rebound in those pairs. Very small gains but inching all day towards my profit goals. So very simply, even though I am close to my target, I want to see if I might go a little deeper into profit as we enter into the Asian open. Asia may decide to wait and see what happens with the Fed, or see how their equity markets react to the down day on the Dow.

I have used this technique many times with great success, and am now hedging my Euro trade with the profits from my swissy. If i see the euro dropping, I will punt while I can, in profit and walk away. But there is the opportunity now to see if the Euro can track upwards for me for an extra 15-25 pips (Above my target).

That is the power of the Forecasts. If they come out and say the Euro is going down, I will get out when I can, make a little profit on it plus my whole profit on the swissy. If the Forecast comes out positive, then I will put a trailing stop on the trade and see where it goes.

I had a question last night on how many pips the Forecast generates. That is really an unknown as we all trade differently with the information that is presented to us. I never say if the gbp/usd hits "x" buy and exit at "y". I say I want to make 30 or so pips on the strength of this currency pair based on the next day projected high and lows.

That is why the Forecasts are not a signal system. Once you understand how the Forecasts can be traded, you can develop a great strategy based on the info in front of you. If you want to trust signals, you might as well have a managed Forex account and have someone else trade for you. I prefer the control and satisfaction derived out of making my own trades. As I am an entrepreneur it satisfies my entrepreneurial desires, and as such I treat the Forex as a business. And no one cares about your business the way you do.

The Forecasts work the same for me as they do for you. The only difference is I compile the data and spit out the results. I do not interpret, look in a crystal ball or throw a dart when I send you the info. I just paint a pretty decent picture based on the facts.

For those who may still be unsure, that is why I have decided to post what I believe are the best trades for any evening based on the minimum risk the Forex affords. This is not a signal to you. This is an opportunity to learn how I use the system and perhaps gain some confidence in the Forecasts. Trade if you wish with the confidence in knowing that I am going for the same position.

Since the launch of the blog in August I think you can see we have a pretty good record going. We profited when the markets were tanking, and continue to profit as they decide which way they really want to fly.

Enjoy the ride and make some money. That is why we are here!