What a good day to do forex trading! I just woke up this morning and quickly checked the forex charts. I know many people will tell you that you should not trade on mondays because a lot of noise going on. But I’m still a new forex trader and just want to learn some experience. Hopefully, the trade I’m gonna show you will be profitable and we learn from each other.
Here is the graph of the chart at GBP/USD pair Feb 8:
I’m expecting a bullish reversal up to later this day but not too much. Probably check it once in a while. I bought 3 lots of it. Why did I chose buy instead of sell? Because there is a fight in the price with is shown by the large pin bar. So I’ll expect it to go up. Not much though but I’ll post the results later tonight.
Update on GBP USD Trade:
Good night guys. I’m about to sleep and just to check my forex trade in the GBPUSD pair. Here is the chart now.
looking good. Hope to continue the upward movement and so I’ll stay in the current trade. My profit so far is:
46.3 Pips or $1,389.00 Profit. Looking good indeed!
Update: Feb 9
Morning once again. At this point, I’m at -18.0 pips.
And a new candle stick is forming. Based from yesterday’s chart, its not much of a difference and I’ll interpret it as something that the buyers and sellers are just equal. There will be a trend forming in the next or so candle stick and I’m expecting it to go up. If not, I’ll just exit the trade if I get below my stop loss of -50 pips.
Update Feb 9 11pm Philippines Time
Decided to close the trade.
Its a profitable trade with 41.6 pips and $1248.54 profit.
USDCHF 4 Hour Chart
Howdy! Its been a while since I last made a post here. Sorry for all the people who still read this blog. I’ve been busy with life and other things. But forex trading will always be one of those things that I could not give up. I always check the market, once a day. And only take a position unless I’m very sure that the trade will have a high probability of success. Do I trade as frequently as I used to? No. But I still trade when I think there is a high chance to profit. I think I’m growing into more of an investor in this regard, rather than a trader. Because I don’t want to watch over trades everyday once I made a position.
As I grow as a trader, I realize that respect for the market is more important than any other skill. When I respected the market, I don’t go for trades that are “pwede na” (just about right) to my criteria for entry. It should be exactly as I want it. I guess respect and discipline comes hand in hand.
I made this trade last Feb 5, 2014, Shorting USDCHF. a 4 hour chart using Ichimoku. And its been going along just fine… I still don’t see any warning signs that the trend is going to reverse, so I’m still holding unto it.
Large bars are quite a fascinating sight especially if you’re riding it. And it can also be a fishy one. I always think of it with a grain of salt and always think that nothing lasts forever. Having said that, the large bar on EURUSD that formed on the 8 hour chart seems to be a bluff and it will now go down.
During the past couple of days this site was offline. It because I was moving to a new web hosting. Made an entry to GBPUSD. This is still experimental trading strategy. Made 328 pips so far.
Our patience is paying off. Our prediction is steadily taking its course. We are looking to open a position next week. Hopefully, price will reach the red line, which I assume to be the top. Our stop loss, near that line.
We are still on our plan and still following that plan thus far. Remember: We only need to get 1 big trend to make money. But in order to make the most out of that trend, we must get into the top or the bottom of that trend. Get into the exact turnaround of the trend. So we have the maximum amount of profit possible. We risk as big as we can possibly get once we know that all our setups are right.
I will not be day trading anymore. I’m focused on trading daily timeframe due to several reasons.
1. I Love Having a Lot of Free Time
As you all know, I love martial arts and this year, I would like to focus on my training. And to be able to train harder, you need a lot of time to practice. I also love to discover new things and not just make money. The thought of just building my nest so my money can work for me is very tempting. I plan to quit day trading forex and focus mainly on swing trading, that is, longer time frame. Which means, less updates on this blog as well.
2. Stress is not worth it
Being stressed out in day trading is just too taxing. I’d rather spend time discovering new things than spending a lot of time in the computer everyday.
3. Being Wealthy is Not Having Money, But Having Free Time
The good thing about swing trading forex is I can set my position, set my stop loss and set my proft target. Then, I’ll just check it a few minutes everyday to see if the market went against or for my direction. I can also add or reduce positions depending on my trades, in just a couple of minutes then I’m off to do something else.
Doing something else, means starting a new business that could possibly earn me more money. Staring at a chart doesn’t make it boil. I need to do something productive while waiting for the market to move. Attend some seminars, business training or start a new business. At the end of the day, the more time you have, the more things you can do and the more money you can earn because the free time becomes a productive pursuit in making more and more cash flow for you.
It has been my experience in forex trading that after consecutive winning streaks comes the losing part. Its a part of life. Let’s see how I hold up this week as I reach the “unlucky” week 13. Shall I make a mistake and end my winning streak? Or shall I go bankrupt this time, again?
The Eurozone is still the hot topic last week. Made an insane amount of profit from Euro affected currency and correlated pairs. A stunning 13%! The only thing that we should watch out for this week is the retracement. Looking at the chart, it seems like it will retrace sooner or later and just in time for the discussion and plans on easing the problem in the Eurozone. Fundamental and technical are holding each other up on this one and it would be pretty interesting what would happen next week.
This could be a good experience should I make a mistake. I’ll be very careful though.
Also, before I forgot, there’s Thanksgiving yesterday and then come weekend. On Monday, it should be a very volatile opening day as the institutional traders will load new trades after getting back from the holiday.
My recommendation: Be careful this week. As all of the Eurozone affected currency might be retracing now.
Making it simple. Is probably one of the most complex thing we have to discover. With a lot of indicators around, forex traders tend to think that the more indicators they have, the more money they make. What is the difference between a forex trader with no indicators and a forex trader with indicators?
The forex trader with NO indicators keeps it simple. Indicators tend to confuse forex trader when a lot of indicators doesn’t match. They tend to think too much and not rely on their own decision making to take a trade. This is present among new forex trader where they will try every indicators available and use it. Up to the point where they get their first loss then drop it.
A forex system will bring losses. It will bring winning trades. Some will have more losses than wins. It is ok. As long as the winning trades can cover the losses up to the point that you’re still profitable.
A forex trader will have emotion. But must not be affected by it. This is what makes forex trading addicting. To constantly in the roller coaster ride. You know you are safe, but its still a death defying experience. With a profitable trading system, you know you will win but the price action still affects you.
There are questions that a forex trader can ask himself before taking the trade. Before entering, after the confirmation signal. He asks:
- What is my profit?
- Where is my stop loss?
- Why do I take this trade?
Can simply summarized by asking oneself of the reason for entry (evidence of a profit potential, a set up or confirmation signal), what’s your target profit and how much risk are you willing to make?
These questions are simple. Three questions that a forex trader can answer easily. The problem lies to whether he can keep his emotion. Psychology plays an important role. Forex trading systems work. Banks use them to earn money. But its the person using it makes it possible to NOT to work.
I opened this position yesterday and currently running at +33 pips as of this writing. The reason for this trade is different from my usual. That is because I’m trying out a new strategy that I discovered while researching about automated trading.
This is a contrarian trade and I may be wrong. I’m posting this for research purposes.
Hello there blog readers. Hello there forex trading colleagues. We have a flash news. There’s a forex break out on EURGBP going to the downside. This could be a long term trend after waiting a few months for the currency pair to finish its corrective waves (consolidation). Keep your stops in check. This could be a big winner and a trend up to next year.