North Sea Forex Group (NSFG) Jan 2007 Update.

Paul from NSFG says,

Hi there everyone,

Well I am afraid that 2007 did not start well for us, we had several position that were hit very badly on our intraday trades because the market had not returned to full liquidity and after the first week we were about 19-20% down.

This was due to a combination of the trades being to highly leveraged and the market not being at full liquidity which meant that the typical support and resistance levels were simply not there and the trades all turned.

We have been working on a more long-term strategy for a while now, which involves trading the daily setups to avoid the intraday noise. This event caused to pause and look into bringing this forward. We are happy that we have done so because the daily trading style provides far lower risk and catches a lot more large moves and we have done very well using since this event.

It does suffer from a drawback, which is that it does not always get the most optimum entry that would get on a trade were you sitting there watching like a hawk, this is not actually a bad thing as often market moves retrace on the first, second push so it is far better to miss the first handful of pips to be sure than the move will continue than get in early only for the market to not actually move this time at all.

It has been these false moves that have caught us out time and time again, when the market moves then its great, but over the longer term these excellent trades are counter-balanced by those that moved then reversed.

This way of trading is much safer, much more secure and provides far more stability for everyone’s accounts.

Since this has been incepted we have had 4 weeks of successful results (this being the 4^th week) of +50 pips, +142 pips and +146 pips. We were able to recover some from the early loss, as the above figures indicate, and get it down to –15.6% for the Month of January, not an ideal start by any means!

We are however continuing forward and are up +3% already for February and expect to move well beyond this.

We expect that by continuing in this steady and conservative fashion that we will complete Q1 in profit and move forward into the remainder of the year with consistent results.

2007 has started badly, however this first month loss resulted in us changing to this style then we are very confident that this is going to be a very good year.

If you have any questions, please do let me know and statements are going to be going out shortly.

Paul