Genesis Clients' Update - Cautious July
Originally shared with internal clients on July 28.
We are almost at the end of July month. I wouldn't say it is an awesome month but with so much noise around the global financial markets, I would honestly say we are doing quite ok. My equity (balance minus drawdown) on July 1st stood at $7854 and today it is $8182. That's 4.1℅ net gain this month.
We have set our sails up and we need the wind to fill our sails and propel. Current choppiness in the FX market may work for some scalping strategies but for Genesis Asset Monitor, we just hold our ground now and then seize the opportunity when the market move. So, even during unfavorable or dormant period, GAM is in capital preservation mode and maintains its hold. As our track record tells, GAM is very likely to keep pushing higher.
Our positions are still well placed. I would like to discuss about NZDJPY trade this time. The pair is in down trend since July of 2017. It broke the critical low of 75.7, not once but 3x (see daily chart attached). It is due for a big bullish reversal soon. Right now we need to wait patiently for the move happen and I bet we will be riding nicely when the price starts to move. Most traders can be right about the analysis but miss out on the trade altogether because before any major trend, price typically whipsaws for several weeks and regular traders just don't have enough patience to persevere and win. We trade differently and we stay profitable for a long time.
Side note. Gold has reached my target price zone and I expect new interest on gold soon to drive its value for a long period.
Check my article to get more info:
Our AUD pairs (proxy for gold) similarly showing the typical bullish patterns and I feel very comfortable in these trades no matter what the price action was for the past few weeks.
So, the indecision in the markets has little impact on our profitability and long term goals. The path ahead is clear and we are staying on course.
I am also very happy many of you are reaching me directly about GAM or other trades they are looking at.
So, remember to drop me an email if you have questions.
If you are already following my trades and wish to be included in my internal email list, please send me a message.
About the Author
Ramesh is an active trader producing over 200% gain in 2017 and author of 3 trade strategy development books sold on Amazon. He is the creator the 10/20/30 Rule™ that could transform a mediocre trading system to become a top performer by following a systematic and thoughtful approach on strategy development.
Books By Ramesh Selvarajoo