Week 32: +20% This Week Great EUR/USD Trade

The main highlight of last week is the trade for EURUSD and capital is now up 20%. Looking at the charts, I think there is something cooking for EUR/CHF.

Remember our analysis on the EUR/CHF that its cooking to go up? Well, it did went up but it seems that many are still shorting the pair. The interesting thing here is that the Swiss government expressed their willingness to intervene should the pair reach around 1.2000. This is last year’s tipping point where exporters are expressing their grief for high exchange rates and businesses are being affected.

Now that the pair is hovering at this level ~1.2000. It might be a great idea to go long and build up the position as you go.

The price action tells the same story, “I want to go up!”.

Keep in mind that before a trend reverses, there might be a consolidation… This move up that we are anticipating, may be preceded by consolidation first before it moves up, or it might continue to go down some more before it moves up. Keep your stop losses tight and be flexible enough to know if you are wrong. I have been wrong a couple of times, so same thing goes here… Trade at your own risk. šŸ™‚

Forex Trading EUR USD March 12

This is done in the daily charts. I saw bar A which is a nice inside bar. But the bars next to to Bar A is a trading range. So I wait for a bullish bar to enter.

Bar B is a doji which means bears and bulls are almost equal. But have a potential as a signal to indicate a bullish trend. So I try and wait if the next bar is bull to enter the trade. It proved to be a bull and closed just above the inside bar’s range. So I entered long depicted in the arrow.

As of now, its +63 pips.

picture-2

Trade Closed 68% Profit – Forex Trade

This is was my last trade on USDJPY. I managed to close the trade with 68% profit before the sudden reversal a few hours before the close.

I think that this following week, we’ll see a retrace on the pair. If it doesn’t make a new high then the trend will continue to go bearish. If it does make and close into a new high. I’ll change my view on the pair as bullish.

Forex Backtesting lesson is now out on our forex trading course. Check it out!

Happy weekend you guys.

I Suck At Writing, Insurance and Girls

I just realized that I really suck at writing. It is hard work for me to write the forex trading courses. I wish I could have made it more enjoyable. That is why I’m ordering some books right now about writing. I really want to share the love of forex trading and I think that my inability to express that love into writing would only limit my reach to more people.

Actually, I’m buying books because a girl rejected me. This fine woman, a manager from a popular coffee chain, I dated for a while just called it quits. She doesn’t know I have a blog so I guess that’s ok venting it out here. I’m buying books so I can forget about the whole thing. I feel devastated…

On the other hand, there seems to be a lot of insurance salesmen. A guy already phoned me selling insurance. He might have thought that I will commit suicide after being heart broken.

This post is not related in anyway with forex trading. But a screenshot of my trade looks just fine. It looks like a blood dripping right? Kinda explain how I feel.

Forex Backtesting

Forex backtesting is the process of going through charts from previous years, weeks or days to confirm the effectivity of a system. Simply put, you look at past charts to know if your system worked well as you predicted or failed. Every new and experienced forex trader do backtesting because it allows the trader to gain knowledge and confidence on his system and make necessary tweaks and rule to find the system that works for them.

Forex Backtesting Software

Most forex companies will let you view at past charts or even download them, where you can mark (using pencil and paper) and trade by looking at one bar at a time (simulating a real trade session).

There are some software that will do this for you. One is forex tester. Well, I think, its the only back testing software out there. Either the forex brokerage company has a feature or not, you can either trade manually or demo trading. Demo trading can be long and tiresome. Using a back testing software, you can instantly test your strategy because you can control the time when each bar will appear.

Conclusion: Whatever method you take, always remember to test your strategy before trading live. Either by backtesting, paper trading or demo trading. You must gain full confidence on your trading system.

I’ve Been Thinking About Goals

Yeah I have reached my first goal after 2 years with a deadline that’s suppose to be 1 year. I’ve been thinking of making this goal on the basis on how much money was made. I realized that its not important how much money you make in this business. Because what attracted me to forex trading is the risk and the intellectual challenge of trading.

Maybe its time for me to add another goal. Sort of like how Benjamin Franklin acquired the different traits he wants to have. Practicing each trait like, discipline and patience, not succumbing to fear and greed, are what I would really like to master more than earning a lot of money in forex.

The only problem is how…

EURUSD +1,687 Pips

Screen shot 2013-10-24 at 11.06.09 AM

Entering a trade inside a kumo, betting that the cloud won’t break. This is what I think while I opened the trade in EURUSD. It has proven to be an effective strategy. As you know, a flat line in a kumo cloud means a strong resistance. While I also drew my own resistance lines, Ichimoku confirmed that it indeed has a high probability that it will not break. So I bet more. The resistance at 1.3500 is a dead giveaway for me. Look at the candlesticks lining up in a straight line. šŸ™‚ That’s another opportunity to add more position from the profit I had on the first to trades near 1.33 and 1.32.

Total pips gained so far +1,687

Screen shot 2013-10-24 at 11.05.56 AMHappy trading.

 

Week 2: Forex Analysis Sept 12 to 16 and a New Toy

The past week has been a very good week. Did we make money? Hell yeah. I got the chance to ride the market movement of more than 800 pips on the EURCHF. And right on the spot, predicted its movement a week prior from the forex analysis week 1 post.


800 pips

My New Toy! iPad 2

That trade, riding its uber tall movement gave me the chance to reward myself with a new toy.

I bought an iPad 2 for myself to reward myself of a job well done. I haven’t got it yet and I’m still waiting for it to be delivered. I will post some pics when it arrive.

I tend to trade well watching tv and I made all the profits while lying in the couch trading in my mobile phone. But mobile trading made my eyes hurt because of very small letters. So I thought I would buy an iPad for a better mobile / flexible trading and at the same time, I can read books without having to clutter my desk with books I already finished reading.

Forex Analysis

EURUSD

It moved quite dramatically downtrend for daily. You may take profits now if you want to be on the safe side for daily trades, because it might pullback to test the resistance. We could see another downtrend for another week. It’s definitely a downtrend on monthly.

Get into downtrend trades. Its a good opportunity to go short.

EURJPY

Its a breakout downtrend on daily. Breakout downtrend on weekly. Still a downtrend on monthly.

Go short trades because its telling a very strong downtrend.

AUDUSD

Downtrend on daily for breaking the strong support at 1.05034. It is a good indication of an incoming downtrend on weekly. Monthly is still unsure. Might be a pullback.

Go SHORT. Its is downtrend for daily and weekly. But be careful holding the position for too long.

EURCHF

Seems like there is a resistance on 1.21822 and it can’t go on further. It might also be a sign for a pullback because the market have moved quite dramatically on daily. On weekly, it is now an uptrend. We are still not sure if it will pullback or not. Just be careful. Monthly is definitely an uptrend.

I would go long for the long term on EURCHF. Since monthly signal is telling us a great uptrend coming. But be careful going long on daily or weekly as we still don’t know if there will be a pullback or not. Enter at your own risk.

USDCHF

There is a breakout on daily. Even if EURCHF is directly proportional with USDCHF, this currency pair instead of pulling back, remained to go strong. There might be a window of opportunity here. Daily is in an uptrend. Weekly is definitely an uptrend. Monthly is uptrend.

I would go for uptrend trades on this currency.

Disclaimer

This trading journal is meant to be for educational purposes only. Please do not take these as trade recommendations and I am not responsible if ever you lose money in the forex market.

Been Traveling – The Benefits of Being a Forex Trader

I’ve been traveling, climbing mountains, tasting different delicacies and meeting women. Right now, I’m trying to live the life that I image for myself. Though, not yet what I really imagine, I can see that I’ll eventually get there.

Traveling costs money. And while you travel, you don’t work. The best thing about being a forex trader is you can earn money just by having an internet connection on your phone. And while I was taking a picture on top of a mountain, I added a position on my trade and my capital now up 38% as we speak.

Oh and I also think the forum is a bad idea. I never thought it would take a lot of time for me to manage the spam. I still haven’t opened the forum for users yet bots and spams are already being submitted. I would remove the forum and the discussion may proceed here in the comments section.

Happy trading.