by Jason Yu, FX Powercourse Instructor
Standing Country Name % Gain Prize
1st New Zealand Niwa Nuri 346.22% $2,500 *
2nd Taiwan Yu-Min Lin 259.62% $1,000
3rd United States Anonymous 158.10% $500 *
4th Sweden Anonymous 152.44% $250 *
5th China Anonymous 137.58% $100 *
Over $4,000 in cash prizes awarded monthly. Learn more about prizes/contest rules.
*Past results are not necessarily indicative of future results.
Volatility continues to pick up in June. Many currency pairs, such as USD/CAD, GBP/USD are at multi decade highs, and traders definitely enjoyed it.
The championship for the month of June goes to a trader in New Zealand. He is a short term trader who typically holds a position from several hours to two days. He started the account with $1,093.70. By the end of the trading month, his equity topped out $ 4,880.00, which translates to a whopping 346% return.
Now let’s take a look at one of the most profitable trades – shorted GBP/USD at 1.9708, and then liquidated at 1.9650 on Jun 8.
Starting off with the Daily chart, we can see that the GBP/USD has been trading in an upward slanting channel. The long term trend line has been acting as the major support. Under such market condition, we mainly look for buying opportunities as a position trader. GBP/USD lost momentum after breaking above the 2.000 handle back in Aprill. It then retreated to the 50% Fibonacci retracement level around 1.9650. The 50% Fibonacci level, the lower Bolling Band and the trendline were all acting as support levels. It was great to see such confluence. As MACD converges toward the center line (bullish divergence), bulls were back in the game. The winner decided to take the advantage of the retracement by shorting the pair at 1.9708 and taking profits at 1.9650 which is the 50% Fibonacci retracement level. Had he bought the pair after it tested the 50% Fibonacci retracement level (also confirmed by Double Bottom), his return would have been much greater.
If you would like to learn more about trading the FX market, the FX Powercourse is a good place to get started. The objective of the Powercourse is to provide traders with all of the tools and resources they need to develop their own trading strategy and effectively trade the spot FX market. We cover the basics of the FX market, fundamental analysis, technical analysis, and last but not least money management. Professional course instructors monitor the course 24 hours a day. It is only $19.99. To sign up, please visit
http://www.fxcm.com/power-course-promo.jsp
On behalf of the FXCM Powercourse department, I want to congratulate all June contest winners. Good luck with your trading in July!