Good afternoon team,

We were previously stopped out of our short on the EURUSD but based on the technical bounce on the DXY and the rejection on the EURUSD from the negative trend line resistance, our bearish analysis still remains valid. We are giving this position another shot as the RISK v Reward is skewed heavily in our favour.

EURUSD Daily Chart

EURUSD 4 Hour Chart

EURUSD – Elliott Wave Count

Trade Setup: SELL market execution, current price 1.1416, stop loss 1.1496 and take profit 1.1100.

Stop loss: 80 pips

Take profit: 316 pips

Afternoon team,

Global equities have been on my radar for a shorting opportunity. Despite the FED comments this week, inflation has hit another record high, levels that have not been seen for 40 years. Despite the DXY dumping, we still feel the market is yet to price in a March interest rate hike followed by another couple later in the year. Fed Governor Lael Brainard said officials could boost rates as early as March to ensure that generation-high price pressures are brought under control. Federal Reserve Bank of Philadelphia President Patrick Harker and Chicago bank leader Charles Evans joined the calls by their policy-making colleagues for higher interest rates this year. This is bearish for equities, especially in the short term.

DAX 4 Hour Chart

Trade Setup: SELL STOP – Entry price 15,740, stop loss 16,040 and take profit targets 15,000.

Stop loss: 300 pips

Take profit: 700 pips

Good afternoon team,

I am watching a couple of pairs and the AUDJPY is the first one on the list to execute. Looking across the majority of indices, they appear to be ready for a move to the downside. This will result in an increased demand for the JPY, and generally speaking the AUD becomes vulnerable due to the risk off sentiment. The AUDJPY is just breaking down from the rising channel structure which indicates a change in trend.

AUDJPY – 4 Hour Chart

Trade Setup: SELL market execution, current price 82.69, stop loss 83.69 and take profit target 80.26.

Stop loss: 100 pips

Take profit: 243 pips

Good afternoon team,

The AUDUSD and GOLD positions are tracking well so far, we will be looking to move the SL on the AUDUSD position to open soon. As we are in the green on this position and will have 0 risk, I am looking to enter a short trade on the EURUSD leading into the NFP and US unemployment data this evening. The FOMC minutes showed the FED is potentially ready to begin raising interest rates early-mid 2022 and will begin to reduce its balance sheet.  This indicates a stronger DXY over the coming days/weeks. Additionally, any positive data during the NFP tomorrow morning should play further into the FED’s hands. Technically speaking the EURUSD is still in a bearish trend, so we are trading with the fundamentals and technicals.

EURUSD Daily Chart

Based on the Elliott wave count, we are expecting a final move to the downside to complete a final 5th wave of a C wave correction.

The RSI has already broken down from its rising trendline support indicating a decline is underway – This has been a leading indicator of a change in trend.

The 23% FIB retracement can provide possible targets for the short side.

EURUSD 4 Hour Chart

We are looking to position now, expecting a breakdown from the rising trendline support tonight. The C wave top is our bearish invalidation level at 1.1389. Targets can be found at 1.1185-1.1045.

Trade Setup: SELL market execution, current price 1.1300, stop loss 1.1392 and take profit target 1.1045

Stop loss: 92 pips

Take profit: 255 pips

Good morning team,

A close call on our GOLD position, however the sharp turn lower due to the FOMC minutes release should play into our bearish setup. The DXY turned sharply higher this morning post-announcement as expected. The market reaction to the FOMC minutes has been a classic hawkish response. Talk about the balance sheet shrinking and a high comfort level with hiking soon have pushed odds of a March hike to 80%. The dollar has rallied, yields are up and stocks are down due to a taper tantrum – the reality of decreased money supply is setting in across all risk assets, even cryptos are down across the board.

DXY – 1 Hour Chart

We can count a five-wave rally and a corrective a,b,c pull back on the DXY. This indicates a bullish trend is unfolding.

AUDUSD – 1 Hour Chart

The AUD will be the most vulnerable currency to a risk-off move in the market. There has been a lower high which indicates a possible change in trend.

Trade Setup: SELL market execution, current price 0.7217, stop loss 0.7290 and take profit targets 0.7083-0.6995.

Stop loss: 73 pips

Take profit: 134-222 pips

Hi Trading Floor team,

Welcome to the trading floor, Forex Kings wants you to be as successful as we are trading in the Forex Market.

I am sure you have a number of questions, however, please read through these FAQs before asking in the live chat.

Please keep in mind, Forex is a very high-risk investment, you should not trade with equity you can not afford to lose.

We lose trades, that is part of trading. Understanding risk management is the key to success in the Forex market. Forex Kings uses anywhere from a 1% risk to a 5% risk of our total balance.

The amount you chose to risk in the Forex market is solely down to your own discretion.

We highly recommend doing a training period on a demo account whilst you learn. It is better to make mistakes on a demo account rather than your real money.

All positions on this page are setups that Forex Kings are currently trading.

Here are a number of FAQs that you should read through.

1. Should I close my trade I am in profit? This is entirely down to you when you close your trade, we set parameters for stop losses and take profits. However, Forex Kings also sends alerts out via text message and telegram of when we close out our trades or update our stop loss. Please do not keep asking if you should close your trade. This FOMO mentality is negative for the community. It encourages jumping in and out of positions which is a very bad trading habit.
2. What is a market execution trade? A market execution is a live trade going in at the current market price. Everyone will have a slightly different entry depending on how long it takes you to place the trade.
3. What is a BUY STOP, BUY LIMIT, SELL STOP and SELL LIMIT? These are pending trades. We want our trade to be activated at a certain level as the current price isn’t a great entry. Therefore we use a ‘pending order’ to set up a trade at a certain level.
4. How do I place a trade? Please go to the section on the trading floor that says ‘how to use the trading floor’. There is webinar content that shows you how to place a trade using MT4. Please watch all of the training videos in the trading floor as well. There is an MT4 guide that you can download from your welcome to the trading floor email.
5. Can I download MT4 on my MacBook? This will depend largely on the broker you have chosen to use. Focus markets offer a MAC version of MT5.
6. My symbols on MT4 are greyed out and I can not place a trade… Please right-click on the symbols list and select ‘Show All Symbols’. This will show you the symbols you need to trade on. As you are on an ‘ecn’ account you will need to trade symbols with ecn at the end for example EURUSDecn. If you are using the MT4 mobile app please press the + button in the top right-hand corner and select Forexecn
7. How do I trade Gold and Oil? There is a CFD cheat sheet in the trading floor. This will teach you how to calculate position sizes on CFDs. Each broker will have different position sizes, therefore you may need to consult with your broker.
8. I am having trouble working out position sizes… Most of our new members use an app called ‘Stinu’. Please download this it will give you the correct position for each trade you complete. To get an understanding of position sizes, please open a demo account to get some practice under your belt.

Any further questions please jump into the live chat, or book a call using the book a call feature in the trading floor.

Leverage & Margin Explained

Leverage

An account with 30:1 leverage means you can multiply your account balance by 30.

For example an account size of $500 X 30 = 15,000 (in available volume).

This means you can place a maximum of 15,000 AUD in volume which equates to $1.5 AUD per pip.

Position size explained:

0.05 volume = 5,000 position = $0.50 per pip

0.1 volume = 10,000 position = $1 per pip

0.2 volume = 20,000 position = $2 per pip

0.3 volume = 30,000 position = $3 per pip

0.4 volume = 40,000 position = $4 per pip

0.5 volume = 50,000 position = $5 per pip

However, remember the volume you use in your position is based on the “base” currency. You will need to convert the volume back into AUD.

Trade Example: 

EURUSD BUY – Market price 1.2150 (1 pip = 4th decimal place).

Stop loss = 1.2100 (50 pips difference)

If you were looking to risk $50 in the market you would be looking to use a volume of 0.1 which is a 10,000 position in the market. 10,000 position = $1 per pip X 50 pip stop loss which is $50 risk. 

However, as you are trading in EUR your position size is calculated in EUR, a 0.1 position is 10,000 EUR. Therefore, if you were looking to risk $50 AUD you would need to bring your position size down to roughly 0.06 which is a 6,000 EUR position, which converts to 9,300 AUD in volume. This will roughly take your risk to $50 AUD when converted.

Position size calculator

https://www.myfxbook.com/forex-calculators/position-size

Margin 

Margin is NOT the cost of the trade, nor is it what you will lose if the trade hits your SL. 

The margin is essentially the amount of money you are required to have in your trading account to place the position. 

Trade Example: 

Using the same trade example:

EURUSD BUY – Market price 1.2150 (1 pip = 4th decimal place).

Stop loss = 1.2100 (50 pips difference)

Using the same position as above (0.6 = 6,000 EURO), the margin requirement is roughly $312. This means you are required to have at least $312 AUD in your account to place this position. Again, this is NOT the cost of the trade. 

6,000 EURO = Roughly 9,300 AUD. Therefore you have used just under two thirds of your available 15,000 AUD in volume. This is based on a $500 AUD account with a 30:1 leverage (15,000 available).

Margin Call

Have you ever heard of a margin call? This is where a hedge fund or bank falls beneath the required equity levels to maintain a position. Essentially, their position has moved against them, and they either need to close down the position, or fund their position to bring their account out of margin call. The bottom line is they run the risk of the position being closed out as they have not got enough equity to cover the margin. 

This is the same as a retail trader. If a trade moves against you, your account can move into a “margin call”. This CAN happen even if your SL has not been activated. You may only be risking $100 in the market out of your overall balance, however you may not have sufficient equity to cover your margin requirement. This can result in a trade automatically being closed by the broker. 

Margin Calculator

https://www.myfxbook.com/forex-calculators/margin-calculator

General rule of thumb:

How to calculate the required position size…

Every one has a different amount of $ they are looking to risk per trade, however the formula is always the same.

$ risk / stop loss distance = $ per pip (in AUD).

Example:

$50 / 50 pips = $1 AUD per pip – Then convert into the “base” currency.

If you have any questions please reach out in the live chat!

Good morning team,

Unfortunately, our initial position on the USDCHF was stopped out at breakeven, however, we are still in the bearish camp and are looking to reload the position in anticipation of a move lower.

USDCHF – Daily Chart

USDCHF – 1 Hour Chart

The move from the low in early December through to the wave 2 top has been very choppy which suggests a correction rather than a trend. The recent rally is also in 3 waves which indicates a corrective rally, the new bearish invalidation level is the wave 2 top at 0.9293.

Trade Setup: SELL USDCHF, market execution, current price 0.9230, stop loss 0.9316 and take profit target 0.8930.

Stop loss: 86 pips

Take profit: 300 pips

Good afternoon team,

Markets are looking very fragile at their current levels with a sharp downturn on Friday night. All JPY pairs look set for a continuation to the downside and the AUD could see the largest move as it is a risk on currency. Therefore during a time of “risk-off”, the AUDJPY should be vulnerable to a deeper correction.

AUDJPY – Weekly Chart

There has been a technical breakdown from a rising trend line support. The weekly candle has also set up a doji formation along with a retest of the broken trend line.

AUDJPY 4 Hour Chart

There are two possible head and shoulders setting up on the AUDJPY. The 82.50 resistance is our bearish invalidation level. We will be using this as our SL zone.

Trade Setup 1) SELL market execution, current price 80.87, stop loss 82.42 and take profit 77.92-77.00

Stop loss: 155 pips

Take profit: 295 pips – 387 pips

Trade Setup 2) SELL LIMIT – entry price 81.50, stop loss 82.42 and take profit 77.92-77.00

Stop loss: 92 pips

Take profit: 358-450 pips