Richard Donchian, no longer with us, was the devisor of several trend-following systems, not least the Turtle Trading system, which is still with us.

Donchian channels are a measure of market volatility, much the same as Bollinger bands
and are about as simple as you can get:-
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• New Post: MetaTrader & Money Management http://is.gd/lzVL #
• New Post: Best timezones for Forex trading http://is.gd/lyfZ #

• Looking at GBP/USD for action today – the head says bearish #
• US stimulus plan – represented as 3m jobs, but a certain vagueness as to where the money finally fetches up…? #

• EUR/GBP definitely looks oversold after this morning, there’s a value bet here, maybe to tp 0.8800 #
• Though CHF might march back against USD quicker than it has – still saying Buy in my (dubious) opinon #
• Been a nice move short on EUR/USD so far today – maybe retrace to 1.2610? Or maybe over as we speak… #

• US CPI 13.30GMT – given up trying to figure price spikes – bad US news, seems to = rush to safe haven and price goes up… #

Tip’d is a social network concentrating on financial news, ideas, and tips – usual stuff, very much the same as Digg, you can bookmark a story, or add a Tip’d button or text link to your blog. I suppose the acid test is when a site creeps on to the default ShareThis, or Sociable for WordPress, list of bookmarking sites. Web 2.0, remember when we used to call it that?
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At first sight, it’s great – Twitter is absolutely made for the forex market and traders – up-to-the-second tweets about what’s happening on the markets, a global perspective, maybe the odd bit of free advice from people who know… But then the problem comes… too much information.
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Let’s say you’re forex trading more than 1 lot, and it’s a winning trade – the pair price has hit your target for profit, previously calculated – and you exit 50% of your current position. Opinion can vary, 60, 70%, but the main thing is you are locking in profit – scaling, or scaling out, your profitable trades.

Time has passed – the market has moved to reflect new circumstances, what was true then, is now altered… so you change your position and go into a revised risk/reward situation.
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• Allen (Jay Gatsby) Stanford? Corrupt? That could surely never be… #
• Well, got EUR/GPB totally wrong this morning – only oversold at 0.880, let alone testing 0.90 – what do I know… #
• GBP Inflation higher than expected – they could try checking at Tesco’s – now we’re paying for the depreciating land deals #
• EUR/GBP bullish this morning – trip back to test 0.9000 today as on the 12th Feb? #
• 0930GMT GBP CPI y/y – can’t see inflation being as critical as it usually is… #

You don’t actually own the stuff you’re buying.
CFDs are a way of trading without buying or selling the underlying financial instrument, whether currency, stock, equity, directly. So, as such, liquidity doesn’t enter into it – in that sense, a purer speculation on price movement up or down.
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