GBP/CHF

This is a currency pair that I got into later than I would have liked; but nonetheless it's been moving for me and I'm happy.

If you notice in the picture above, the currency pair found a good solid support at about the 2.1254 level. Now, if it were to break that line then the major downward trend should continue. Well, after touching that support level about 6 times; it finally broke through it and did so with authority!

I shorted 2 mini contracts yesterday afternoon and I've caught some of the ride. My stops are tight to lock in the profit that I've made so far. Additionally, I would expect a bounce of some sort as that will be people taking profit.

But understand this.....In currencies, the move that you see here (from 2.1254 to 2.0713); that's a total of 541 'pips'. Now a pip is roughly equal to $1.00 in size (roughly because it varies from one currency pair to another...this one might be $0.95 per pip...but we're using $1 for easy math...).

NOW, a 540 pip move would produce about $540...ON 1 MINI CONTRACT!!! Now, if you trade 1 full contract (which is made up of 10 mini's) then that's $5,400...10 full contracts takes you to a grand total $54,000.....in about 3 days....

Tell me thats not awesome! You're CRAZY if you think it's not...54K in 3 days....let it sink in.....Hmm, Hmm good. That's the power of leverage!

-Matt J