Making Forex Pips Out of Dow Jones Extreme Swings

The Dow Jones Industrial Index had erased a whopping minus 400 points at the opening and was finally ended in a triple-digit gain of 400 points. A massive 800 points swing intraday.

I didn't follow stock charts these days. But as a forex trader, I did pay attention to yen-crosses / carry trades markets. During this financial turmoil, high yield currencies such as GBP/JPY, AUD/JPY, AUD/USD, NZD/USD, etc are showing a good price correlation with the movement of stock market indices.

When the Dow Jones was hovering near the breakeven level midday, I made my first two discretionary trades in the yen-crosses markets. Promptly took my profits after the Dow's first 100-point breakout run. I then reversed my positions after Dow hit 200 plus points. Exited immediately with reasonable profits for the second time. I decided to stop trading after that and were actually out of position during the Dow's final-leg surge to 400-point gains.



Most of the time, almost 90% of my forex trades are executed by my automated trading programs / expert advisors. Today, I made an additional gain of 313 pips manually using my discretionary skills and technical judgement with my forex chart systems.