The best ever explanation of why Trade Triangles Work!

and why equities will continue flying...

This is a great video by Adam giving the best explanation of Trade Triangles I have seen yet. Yes, I am biased...but I would be a dork (my kid's expression) for not having Trade Triangles as one of my trading weapons...given what they have done for me.

Three things: It's free for 30 days, they have had a significant impact on my account's success, AND they are very inexpensive if you decide to go longer then 30 days (averages $50/month, but I don't think they do monthly.)

P.S. Much of my trading uses MACD...and I can't believe the positive divergence shown in this video. Where was I?!

If you are buying equities for the long term...

Kathy Lien, a person I admire, read, and quote all the time, just came out with this great report (pdf) on China and investing in what the Chinese govt. will be buying.

Now, I don't like holding equities...I am an Fx trader. Chances are we are still going to get a significant correction before we go much higher. I can't think of anything worse then buying good, financially solid companies in a bear market (for the long term), or even in a recession, because the markets are not based on fundamentals right now, and nobody will care about the strength of their balance sheets. (Yes, I am aware that the markets lead the economy.)

...But if you move your stops up on any equities that you buy, you can lock in any profits during this government-sponsored run up in equities.

As promised:

My back-to-even Bob Iaccino account statement here. Remember that I started with these guys in the midst of one of their mini losing streaks. See the improvement at the bottom of the statement (chart.)

I consolidated my main Forex account into cash at the beginning of June, but you will see a 72% profit since the beginning of January.

My intermediate Forex account, which is up 22% since January (Zip file.) This account and the one above is a product of my analysis and research. The July statement does not show an additional $375 profit I made this morning. (I decided to close yesterday's intermediate position.)

My options and equity account, which are titled in my children's names, so I can only recreate the trades.

Here are the account particulars:
--My Sprint trade (which I closed at around 13% profit)
--My Zion Bank trade. (26% profit)
--The Gold puts purchased to protect my long term gold position have expired with a $3000 loss.
--The Puts I bought (and sold) to protect my gold, the first time around. ($11,000 profit)
---My S+P puts which expired worthless with a loss of $3,100. I am considering buying them again. Obviously, I should have gone out to July or August.

Took profits on half the trade

For the second time in less then a week I missed being stopped out by a couple of pips. I went long EUR/JPY a half position at 135.16 and then went long another half at 134.39. Since then, I sold that second half for a $400 profit and still hold the original half.

The original trade was care of Bob Iaccino, and I used my charts for the second position that I initiated...the charts showed panic selling (bad Microsoft numbers,) and nice basing after the mini correction.

Because of Trade Triangles, I also went long in my intermediate account because of the new weekly up triangle issued in the EUR/YEN ...

Out of trade

Out of Euro/US trade with about a $350.00 profit.

Also just initiated a long Euro/Yen trade...stay tuned for details.

Opened a new trade a little while ago...

Although it was on the Trader Outlook (Bob Iaccino) trade setup page, I didn't want to go long EUR/USD when it first closed above 1.4200 because the close was much higher then that price...a big move had occurred before the bar had closed, thus limiting the profit potential. We did rotate a little so I got in this evening. (Clicking on the chart gives you a clearer view):

Entry= 1.42255
Stop= 1.41520 (we were told below 1.4163)
T1= 1.4276
T2 (after I sell half and move my stop up to b/e)= 1.4318

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I want to do an account/statement update some time tomorrow...(I told you the Bob Iaccino account I opened would recover.)

T Boone Pickens Vs. the Trade Triangles

MarketClub did this great video on the ETF that closely tracks the natural gas market. The United States Natural Gas Fund (PACF_UNG) is a popular energy ETF.

Had you followed the trade triangles in this ETF (I always mention that they have been huge to my account's success,) you would have profited handsomely. I certainly wasn't watching it because I do FOREX mostly...but the triangles work for everything, and this video will show you how and why they work.

Adam discusses how the technology outperformed one of the smartest investors on the planet, legendary oilman T. Boone Pickens (the shill who is on CNBC all the time.) And in the video, he uses Picken's own results for his hedge fund BP Capital Management LP.

If you watch starting from March of 2008 and compare MarketClub starting at the same time...well, I will let you draw your own conclusions on this one.

Out of trade

We were advised by Bob Iaccino to get out of the Ozzie trade because the short term chart broke...but I iniated a long termer yesterday in a different account. Respecting stop losses is the most important thing...

Also, in a previous post, I felt that 956 S+P was a big resistance level. We were there and bounced down...so commodity currencies like this will usually be sympathetic. This is why short term trades differ from intermediate...you can deal with whipsaws when you have an account that allows for longer term trades.

Natural Gas ETF video coming up in the next post.

Trade Update

Looks like the AUD/USD pair I am long on is just treading water. Down a little, I am surprised that I was not stopped out at .80850 (which is my S/L) a couple of hours ago. Amazingly enough, the bar that closed at 5:00 p.m. closed only 2 pips above it...at .80890!

This is important, because Bob Iaccino does not recommend specific prices or stops to place (not allowed.) He gives me 'areas', and it's my job to determine where to set up my trades based on my risk parameters. Usually, Bob will say the range can be more or less then 20 pips or so from the 'area' he uses for his trades.

In this case, I chose a point that was exactly 21 pips away from his .8106 area...and the low of the bar went as far as 17 pips away from the area we were given. To determine the stop, I looked at the only bar that came close to this, and that occurred on July 20 at 10:15 a.m. So I decided to go with a stop that was a couple of pips lower then that low...and it was just enough (of course the trade is still open, and therefore anything can happen still.)

Pair is at .8145 as of writing.

New Weekly Trade Triangle

Interestingly enough, the other indicator I use a lot of...my trusty Trade Triangles...just issued a new weekly up triangle on the AUD/Greeny. As I have said many a time, weekly issuances are not common with MarketClub, so you gotta pay attention.

Short term, I am down on this position...so if I am stopped out, I will look at the next support point to go long again, BUT in my intermediate account. (When you click on the bright logo below, Adam does another video on the bullish 'yellow metal.')

(Clicking on the Ozzie chart gives you a clearer view...note the RSI is well below 70):

Long the Ozzie/Greenback

Decided to follow along with Bob Iaccino's Trader Outlook and went long 1 Lot the AUD/Greenback. The fact that they recommended this trade means that they also placed the trade in their own firm. (The break over 0.8154 on the 4 hour chart in this pair could also be construed as bullish for Gold.)

Enter= 0.81665
Stop= 0.80850
T1= 0.8235
(If I get there, I will sell 1/2 and move my stop up to b/e.)
T2= 0.8260

Don't doubt Bob Iaccino darn it!

I wrote this a few weeks ago. I stated that there is no way that the account I set up for Bob Iaccino's trades would continue down. They were on a mini losing streak, and anybody that thinks trading doesn't come with a few punches or knockdowns...doesn't know trading!

The system he uses is very hard to lose money with. Below is the statement for the account I am using for his recommendations. NOTE the graph at the bottom.

Out of trade

Out of trade with a total of about $550 in profits...my Gold position is also profitable as we speak. To see the Bob Iaccino method that I used in this trade, click the banner.

Trade Update

Just like Trader Outlook does, sold half my GBP/US position for a profit and will move the stop up to B/E where I originally went long. Night time is not the greatest for trading, so I locked in a little. This is not a Trader Outlook official trade, but it was done using similar rules that they use.

Newest Trade

I liked the way the EUR/USD was looking this evening BUT decided to go long the GBP/USD instead. Because of a big move it recently had, the trade was to wait until it had a rotation...a little profit taking. This is otherwise known as a swing trade. The 1.631 level looked like a good entry point as we had a bullish bounce off the 60 Day EMA so I did it...

Long 1 Lot of GBP/USD @1.6360...

If we get a 4 hour close on the EUR/USD above 1.4169, I am going to use a Bob Iaccino technique and get in. It's not an official rec. by him, but I love trading on my own with his lessons and techniques.

I think equities are looking really strong here...at least until 956 S+P...this should help support my trade and allow for a generous Stop (1.6283)