A lot has happen last week. As the market’s volatility rages on because of the Eurozone conferences, most of my trades and stop losses has been hit with a loss. I’m just breaking even right now for the losses from last week.
I’ve been also preparing to “invest” in the stock market. Just to hedge the underlying “riskiness” of forex trading. I say invest and not trade, because I’ll be entering the stock market only for the long term goal and cash flow. The strategy for me investing in the stock market is for a less risky, long term, income generating approach. While my forex trading will be my aggressive side. Never put all your eggs in 1 basket as they say.
Anyone also investing in the stock market? What’s your favorite stock?
EURUSD 8 Hour Chart
There is a strong resistance at near 1.3400. At this moment, it could be a good time to short.
Last week has been good forex trading not so good on local markets and stock market though. But that’s a different story. Kind of practiced patience not only in trading but in general as well. You see, last week, this site was hacked. And I thought that was a good opportunity to test patience as I never panicked and just calmed myself that everything is alright. Now looking back at it, it felt pretty good. Friday, I got a chance to enter a trade that I thought was a good time. Its in GBPJPY and USDJPY and I will review them today.
Its a good buying opportunity. It seems like the trend has ended for GBPJPY but don’t be so sure. Even if it is not the end of the trend, it is still a small risk to take with great rewards. We should expect the price to go up to 50% fib entrancement. If it doesn’t break the high of Thursday, we can call this trade invalid. Nevertheless, I’m in this trade and the risk – reward ratio is good so I’m sticking with it. Weekly is on a downtrend and Monthly has just reach a support. This week will be crucial in ending this month’s price.
Seems to me that it already hit rock bottom. So I’m taking LONG trades from now on. Remember to use stop losses so you can lessen risk.
Here’s an update with my experimental trade.
EURUSD as of this moment has 2 positions. 1st has 321 pips and 2nd position has 221 pips. Looking good for my experimental trading strategy. Total profit of 542 pips.
This is the update from my post yesterday. Around 561 pips so far for this trade.
AUD/CAD Daily Chart
A textbook candlestick pattern spotted on AUD/CAD. A perfect opportunity would be to wait for the next candle if its a bull candle then its a valid signal. If not, then its false alarm. Risk takers can enter on this pair now on the long side. I’ve never seen a candle stick pattern as light as a day as this one.
I was surprised by the news when it was revealed that the US Government will be shutting down. This could be a great opportunity if you’re that kind of trader. How can we make money with this news?
The answer is… You don’t trade.
This site has been created for the sole purpose of teaching myself how to trade forex. By documenting it, I realized that people have also been able to make something out of it and help them get started. During the years I have been trading, there’s always 1 rule that I always remember when I hear news like this. Follow your trading plan.
Your trading plan has a purpose. You created that plan. If a news comes out, and you abandon it, you’re into a world of trouble. Part of trading forex is the discipline to say NO, no matter how enticing the news might be for you to make a profit.
Always remember to never trade the news. If you’re a kind of trader that uses the news, then thats good. More power to you. Why the hell are you on my site by the way? 🙂
EURUSD 1D long position
This is an update from the long position I made a few days ago. The trade is now running at +120 pips profit. The condition is still valid so I’m sticking with the long position. This is an experimental trade and posting this for educational purposes only.
The idea behind the trade is a contrarian position.
Another position I entered using the same strategy last week is this.
USDCHF 4hr short position
The strategy is proving to be profitable with +110 pips already made in this pair. Of course, it needs a little more polishing but I think it is proving to be promising. Its easier to implement as well so when I get started with automated trading.
In total we have +230 pips a very promising experiment! And we are profiting 2 out of 2 trades. That’s 100% accuracy. Of course its too early to tell. But I’m very excited with this new system. Its easy and profitable.
I’m going to start a series of trading journal as to convert this blog into a personal forex trading diary.
This is my entry trade for GBPAUD, May 10, 2011
Comment: Trade is according to plan. And entry conditions are met.
After breaking the support, it immediately bounced back and creating a really good reversal candle, Engulfing Reversal Pattern).
This trade went against me. A VERY LARGE bullish candle went ballistic and got stopped out. I immediately changed position into long.
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.
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.