6-Figure Capital at Your Fingertips

GM. Currencies & Coffee on the air – stripping down the forex world to its bare essentials.

Here’s what we have covered today:

☕ Falling Oil Prices, U.S. And China’s Inflation Data

☕ 6-Figure Capital at Your Fingertips

☕ Gold and Silver Set To Drop - Gameplan to profit!

🗞️Movers & Shakers🗞️

Let's stroll down last week's financial lane and peek into the upcoming monetary events. Here's a simple breakdown for you!

The Week That Was:

➡️ Market Mood: The start of the quarter was a bit bumpy for investors. Think of bond yields as the interest rate on government loans. When these go up, it can signal that the economy might be in for some changes, making investors a bit nervous. But things settled down by midweek.

➡️ Currency Movements: The Euro and Australian dollar both made a bit of a comeback, and gold prices also seemed to be on the rise.

➡️ Oil Dynamics: Oil prices dropped, and some believe it's because people are worried about the economy slowing down. OPEC+, a group of major oil-producing countries, decided not to change how much oil they're producing, but they might reconsider if prices keep falling.

➡️ Bank of England & BOJ: The Bank of England hinted that they might change interest rates in the future. Meanwhile, there were rumours that the Bank of Japan stepped in to influence currency values, but we'll have to wait for more details.

➡️ US Manufacturing Update: The ISM manufacturing index showed some positive signs, which gives us a sense of how the manufacturing sector is doing. It means factories and producers are doing a bit better than before.

The Week Ahead:

➡️ FOMC Meeting Insights: On October 11 at 6:00 pm GMT, we'll get a peek into the Federal Reserve's recent meeting. Last time, they kept interest rates the same, but there were hints of a possible rate increase soon. This release might give us more clues about what the Fed is thinking. Any strong hints could influence the US dollar's strength.

➡️ U.S. Inflation Data: Inflation tells us how prices change over time. On October 11 at 12:30 pm GMT, we'll see data on producer prices (PPI), which is expected to stay the same. On October 12 at 12:30 pm GMT, we'll get consumer price data (CPI), which might show a slight decrease. Another key report to watch is the University of Michigan's take on inflation expectations on October 13 at 2:00 pm GMT. Higher inflation could boost the US dollar as it might signal more rate hikes by the Fed.

➡️ China's Inflation Reports: On October 12 at 1:30 am GMT, China will share its latest inflation numbers. It looks like consumer prices might increase while producer prices (which can hint at demand) might decrease less than before. If producer prices drop faster than expected, investors could be cautious, potentially affecting riskier currencies and favouring safe-haven ones.

6-Figure Capital at Your Fingertips

Today, we will talk about a tip that can significantly impact your journey towards success. It's called "scaling", a powerful strategy to help you systematically grow your capital and trading skills. Let's explore how you can apply this technique effectively.

Starting Small and Learning:
Starting with a small trading account is crucial when you're new to trading. This serves two vital purposes. First, it limits potential losses as you learn the ropes. Second, it allows you to develop and test your trading strategy without risking substantial capital. I always suggest starting small with a couple of hundred dollars, and if you cannot start with that, you can use a 'demo' account with any broker to trade virtual funds as you practice.

Building a Solid Foundation:
Rather than diving headfirst into the market, dedicate your initial phase to learning, strategizing, and refining your skills. This is your time to make mistakes and learn from them while preserving your capital.

Tracking Your Progress:
Keep meticulous records of your trades and performance as you gain experience and your small account grows. Use a trading journal to record your entries, exits, and thoughts behind each trade. This invaluable tool will help you identify strengths and weaknesses.

Scaling Up Gradually:
Once you've achieved consistent profitability and built confidence in your trading strategy, it's time to consider scaling up. But don't rush into this phase. Gradually increase your position sizes as your capital and skills grow. A common rule of thumb is to risk no more than 1-2% of your trading capital on a single trade.

Leveraging Proprietary Trading Firms:
As your trading capital expands and your performance improves, you may have the opportunity to leverage the capital of proprietary trading firms. Many prop firms offer trading programs where you can access larger capital allocations after passing performance evaluations. This can amplify your trading potential significantly. The reality is you can go from Zero to a funded trader with multiple 6-figures in capital in just a few short months, making 4-5 figures a month in extra income.

Action Steps:

1️⃣ Start with a small trading account, focusing on learning and risk management.

2️⃣ Dedicate time to build a solid foundation by developing and testing your trading strategy.

3️⃣ Keep a detailed trading journal to track your progress and learn from your trades.

4️⃣ When you're consistently profitable, gradually increase your position sizes within your risk tolerance.

5️⃣ Explore opportunities with proprietary trading firms to access more capital.

SIP, LAUGH, TRADE 😁

📈LATTE LINEUP📈

-XAGUSD- (Silver)

HTF (12-HR): Silver is in a clear downtrend on the Higher Time Frame (HTF), with the price forming a new lower low and now retracing to retest the previous lows and support as resistance. This zone also nicely aligns with the 50% and 61.8% Fibonacci zones, forming a strong confluence area for the price to reverse and continue its bearish trend. Let's wait for the price to show us that sellers are interested in the zone through the formation of bearish rejection or engulfing candles. We can then move to the Lower Time Frame (LTF) to hunt for an entry.

LTF (1-HR): As always, once our HTF confirmations align, we want to see the selling pressure of the HTF translate to a shift in market structure on the LTF from higher highs and higher lows to lower lows and lower highs. We can execute a sell position once we have a break and retest of an LTF support confirmed by bearish rejection or engulfing candles. I will look to place my stop loss above the previous high and target the previous HTF low.