After these 2 whole weeks of bad trades, I've decided to go back into trading "safer" pairs; this means totally not touching pairs like GBP/JPy, GBP/CHF and EUR/AUD. These are killers man. Make you rich overight, and then take away double of whatever you earned the next day.
Been trying out EUR/USD after not touching it for sometime, and things seem to be working out. Being a lot more prudent, trading and earning a smaller cut out of the movements, and consistantly reminding myself not to bother about making a killing. 30USD for an account like mine would do well everyday, that makes me 1000SGD richer every month. Good enough for a student trader. But of course, this would only be carried out for the next 2 to 3 months or so.
I need more capital, so that I could trade bigger sizes. This is the key to it, and I must never forget. Of course, this blog has been set up to ensure discipline, but look at what happened, I haven't been blogging for approximately a fortnight or so, which also means I have been losing money for a fortnight already.
Currently I'm watching out for good movements in mainly EUR/USD, USD/JPY and GBP/USD, kind of ignoring other pairs already. If I can make it in these 3 pairs, I don't see why I would have much of a problem with the rest.
For now, I'll just be trading on a demo account until next year. Total balance/equity is standing at 250usd now, lost half of my capital already. But 250usd gives me eligibility to hit on next month's IBFX's competition. Things should be pretty intense by then and I wouldn't be surprised if my t/p objectives are being limited at 20 pips with a pretty lousy R/R. But 20 pips is always better than nothing, right?
Monday, December 24, 2007
Monday, December 10, 2007
Mistakes
A lot of mistakes made last week. Wouldn't be touching on the small little trades, more on the bigger trades.
I had shorted a total of 1.55 lots on GBP/JPY with an average price of 225.20. Don't ask me how I ended up risking so much, simply because of greed.
The t/p at 222.00 didn't work out, lowest was at around 223.77, and prices didn't look back since then.
Charts had indicated rebounds coming up, I was in a way, prepared for a rebound. But, not so much of a rebound until it seems like a countertrend already.
Lesson learnt for the week: Traders are short-term, don't bother holding on to a trade for more than 2 days.
Because of this "big" trade which I was looking out for, I had definitely missed out a lot of other so-called "smaller opportunities" which I had confident of.
This week would be a pretty busy week, so I guess not so much trading would be taking place yea?
Events to look out for would be interest rates statement from Fed. I'm thinking of how to position myself for this tomorrow, or should I just position myself today.
I had shorted a total of 1.55 lots on GBP/JPY with an average price of 225.20. Don't ask me how I ended up risking so much, simply because of greed.
The t/p at 222.00 didn't work out, lowest was at around 223.77, and prices didn't look back since then.
Charts had indicated rebounds coming up, I was in a way, prepared for a rebound. But, not so much of a rebound until it seems like a countertrend already.
Lesson learnt for the week: Traders are short-term, don't bother holding on to a trade for more than 2 days.
Because of this "big" trade which I was looking out for, I had definitely missed out a lot of other so-called "smaller opportunities" which I had confident of.
This week would be a pretty busy week, so I guess not so much trading would be taking place yea?
Events to look out for would be interest rates statement from Fed. I'm thinking of how to position myself for this tomorrow, or should I just position myself today.
Tuesday, December 4, 2007
Holding Your Guns
Yesterday wasn't that well afterall. Lesson of the day: Holding your guns.
When you've decided on your trade, always bear in mind, never to change positions unless it really is beyond hope. There's always a reason for you to enter a trade, and its always a dumb reason to stop your trades.
GBP/JPY Hourly Chart
Take my trades yesterday for example:
First trade was a long GBP/JPY.
Rationale for entering was MA(5) had just crossed the MA(8) line, coupled with stochs at less than 10. This definitely meant a correction no matter what. So the long position was entered at 227.50 at GMT 4.45. However, in fear, I closed off the position with a close to breakeven profit at 227.52, and afterwhich, prices shot all the way up to 228.22. A clean 50 pip profit would have been made.
However, I closed off the position to go short, at 227.50, which also caused me a loss of 59 pips as my stop loss was at 228.09. This was utterly depressing, So I decided to hang on to see what would actually happen.
After a few hours, I decided, since MA(5) had crossed above MA(8) on my chart, I decided to go long. And then, there was a downturn and there it was, it hit my stop loss again at 227.50.
So I rested for awhile, before deciding to go short at 227.75. This position kind of worked out, and not before long I was up as much as 115 pips, and also in the process I pyramided again at 226.92. These positions showed high profitability; however in less than an hour, it rebounded and then hit my stop losses for both positions at 227.75. So in a way, I broke even and also lost another 83 pips in this movement.
Then, I decided to take another break and then entered into another long position, at 228.00, when the pair looked more bullish. Within an hour, I lost another 50 pips.
All the trades I made yesterday were horrible, and simply stupid. If I stopped switching my positions so often, I probably would already have hit my profit objective of the day and then stopped trading altogether.
The experience yesterday taught me to hold my guns and stick to my beliefs, regardless of how much the rest of the world was telling me I was simply on the wrong side of the game.
That's all for the review!
When you've decided on your trade, always bear in mind, never to change positions unless it really is beyond hope. There's always a reason for you to enter a trade, and its always a dumb reason to stop your trades.
GBP/JPY Hourly Chart
Take my trades yesterday for example:
First trade was a long GBP/JPY.
Rationale for entering was MA(5) had just crossed the MA(8) line, coupled with stochs at less than 10. This definitely meant a correction no matter what. So the long position was entered at 227.50 at GMT 4.45. However, in fear, I closed off the position with a close to breakeven profit at 227.52, and afterwhich, prices shot all the way up to 228.22. A clean 50 pip profit would have been made.
However, I closed off the position to go short, at 227.50, which also caused me a loss of 59 pips as my stop loss was at 228.09. This was utterly depressing, So I decided to hang on to see what would actually happen.
After a few hours, I decided, since MA(5) had crossed above MA(8) on my chart, I decided to go long. And then, there was a downturn and there it was, it hit my stop loss again at 227.50.
So I rested for awhile, before deciding to go short at 227.75. This position kind of worked out, and not before long I was up as much as 115 pips, and also in the process I pyramided again at 226.92. These positions showed high profitability; however in less than an hour, it rebounded and then hit my stop losses for both positions at 227.75. So in a way, I broke even and also lost another 83 pips in this movement.
Then, I decided to take another break and then entered into another long position, at 228.00, when the pair looked more bullish. Within an hour, I lost another 50 pips.
All the trades I made yesterday were horrible, and simply stupid. If I stopped switching my positions so often, I probably would already have hit my profit objective of the day and then stopped trading altogether.
The experience yesterday taught me to hold my guns and stick to my beliefs, regardless of how much the rest of the world was telling me I was simply on the wrong side of the game.
That's all for the review!
Monday, December 3, 2007
GBP/USD
Good morning!!! Brand new day, brand new week, brand new month. Feeling kind of queasy so decided to skip school. But the trading bug in me hasn't exactly been able to die off so I decided to open up my platform and watch the charts.
While doing so I spotted the GBP/USD trade and am now waiting for a breakout. Below is a picture of the graph:
GBP/USD Hourly Chart
There seems to be a sideways movement as of the past 8 hours of trading and I'm currently waiting for a breakout. If it doesn't break out of this sideways movement, then I suppose the best would be to just stay out of it.
That's all for now!
While doing so I spotted the GBP/USD trade and am now waiting for a breakout. Below is a picture of the graph:
GBP/USD Hourly Chart
There seems to be a sideways movement as of the past 8 hours of trading and I'm currently waiting for a breakout. If it doesn't break out of this sideways movement, then I suppose the best would be to just stay out of it.
That's all for now!
Saturday, December 1, 2007
Equity Update: Week 1
Equity is currently standing at $550.67, up 10.13%.
I'm glad the previous trade managed to hit my breakeven price, or should I say, hit it by 1 pip above my entry price at 229.01. I promise I wouldn't hastily enter any trades next week.
A review of this week's trades would be pretty simple as only 2 main trades took place. One was a wrong short in EUR/AUD, which brought about a loss of approximately $25, and the other was the GBP/JPY. Details of the trades were in earlier entries.
Lessons to be learnt in these two trades would be mainly staying calm before entering any trades. Indicators never fail you as often as you fail the indicators.
Anyway IBFX's December Contest would also be starting next week as well, so it gives me even greater pressure to actually abide by the trading rules and not violate them at any given moment. Prizes would are awarded to the top 5 placings and monies are as follows:
1st $3,000
2nd $1,500
3rd $ 750
4th $ 500
5th $ 250
I've checked out the previous rounds' results. Winners did not exactly have spectacular results. But I believe if I abide by my trading rules, there shouldn't be any problems with winning the free prize monies.
All the best for next week!
I'm glad the previous trade managed to hit my breakeven price, or should I say, hit it by 1 pip above my entry price at 229.01. I promise I wouldn't hastily enter any trades next week.
A review of this week's trades would be pretty simple as only 2 main trades took place. One was a wrong short in EUR/AUD, which brought about a loss of approximately $25, and the other was the GBP/JPY. Details of the trades were in earlier entries.
Lessons to be learnt in these two trades would be mainly staying calm before entering any trades. Indicators never fail you as often as you fail the indicators.
Anyway IBFX's December Contest would also be starting next week as well, so it gives me even greater pressure to actually abide by the trading rules and not violate them at any given moment. Prizes would are awarded to the top 5 placings and monies are as follows:
1st $3,000
2nd $1,500
3rd $ 750
4th $ 500
5th $ 250
I've checked out the previous rounds' results. Winners did not exactly have spectacular results. But I believe if I abide by my trading rules, there shouldn't be any problems with winning the free prize monies.
All the best for next week!
Friday, November 30, 2007
The GBP/JPY Jerk Off
Right before my eyes, the GBP/JPY jerked off, and hit all my t/p. Been a very very exciting afternoon here, and I have earned a total of $74.76. The only crazy thing which I have done would be entering into another GBP/JPY trade at the price of 229.00. I know it sounds mad, but take a look at the hourly charts of GBP/USD and USD/JPY.
GBP/USD Hourly Chart
USD/JPY Hourly Chart
Both shows an upward movement, though with very little potential. And while typing this post, I think I should stop my self deception and close the bloody position at breakeven.
That's all for today, a 10% return in initial capital invested.
GBP/USD Hourly Chart
USD/JPY Hourly Chart
Both shows an upward movement, though with very little potential. And while typing this post, I think I should stop my self deception and close the bloody position at breakeven.
That's all for today, a 10% return in initial capital invested.
The Pyramid; GBP/JPY
H4 GBP/JPY Chart
I have just closed in half of my previous 0.42 lots of GBP/JPY, locking in a $7.80 profit. Also, I have moved up my s/l for this trade to my breakeven point at 227.10.
I'm looking to pyramid 0.53 lots more on GBP/JPY at 227.60 with a s/l at 227.10 and a t/p objective at 228.60. For now, I shall just wait for prices to hit my buy limit.
GBP/JPY, the counter trend
Hourly GBP/JPY chart
You know, I have been waiting for this trade for at least the past 8 hours. And the most sickening thing which could ever happen would be I dozed off in the morning at 7.30am after waking up and woke up at 10 to realise that I had missed some big moves.
Casting that aside and to not affect me emotionally, I have now placed a buy order of 0.42 lots at 227.10, with a s/l at 226.50 and a t/p objective at 228.10, a 100 pip profit.The maximum loss for this trade would be $22.93, exceeding my maximum trade risk by 0.8%, bringing the total risk for this trade to 4.8%. However this risk is worth taking due to high potential in this trade due to past GBP/JPY movements of at least 200 pips in each movement. A trailing stop of 10 pips would be set after a 50 pip profit.
Maximum R/R of this trade would be 1:1.67.
*While typing this post, the price hit my buy limit.
Bad Warm-Up
Just felt like clicking something, and there I was, ended up shorting EUR/AUD. Right when I shorted it at 1.6708, it hit my stop loss at 1.6758 within 10 mins. Painful warm-up. This shall remind me of sticking to the guidelines which I have set for myself and not break them.
So next the trade shall be a 4% risk on capital.
So next the trade shall be a 4% risk on capital.
USD/CHF; Chance Spotted
Hourly USD/CHF Chart
By accident, I kind of spotted this trade. Looking to short 0.55 lots with a s/l of 50 pips and t/p of 50 pips as well. R/R of 1:1. Not exactly the best in the world but worth the trade due to high probabilities. A cross under MA(8) for MA(5) would siginify a time to enter, stochs are all pointing downwards, coupled with RSI sitting at 50. This is something to look out for.
Simply, waiting for a cross now.
Thursday, November 29, 2007
Issue Solved
And yes, I am back. My "New Orders" button issue is finally solved. And thanks to Jody, I now have the arrows which will notify me when my EMA crosses each other.
My call on EUR/AUD this afternoon on the hourly chart, was kind of partially correct, and would definitely have proved profitable if a trailing stop had came into place. A profit of approximately 80 pips could have been achieved instead of the targeted 100 pips, not too bad for a few hours of monitoring.
The next call for me would be a long on GBP/USD.
Hourly Chart for GBP/USD
As we can see from the chart, there seems to be a countertrend coming up. Hence, I'm waiting for my indicators to affirm this before going long. Stochs and RSI are both at very low points and possible reversals may occur soon. A cross of MA(5) over MA(8) would surely be helpful and then I suppose it would then be a time to go long.
I'll probably be risking 5% of my capital which is 25usd in return for 40usd. Lot size would be 0.5 mini lot with a s/l of 50 pips and t/p of 80 pips. Price to enter is yet to be confirmed as I'm still waiting to catch a proper price at this moment.
Updates would come up later. Time for Bloomberg TV!
My call on EUR/AUD this afternoon on the hourly chart, was kind of partially correct, and would definitely have proved profitable if a trailing stop had came into place. A profit of approximately 80 pips could have been achieved instead of the targeted 100 pips, not too bad for a few hours of monitoring.
The next call for me would be a long on GBP/USD.
Hourly Chart for GBP/USD
As we can see from the chart, there seems to be a countertrend coming up. Hence, I'm waiting for my indicators to affirm this before going long. Stochs and RSI are both at very low points and possible reversals may occur soon. A cross of MA(5) over MA(8) would surely be helpful and then I suppose it would then be a time to go long.
I'll probably be risking 5% of my capital which is 25usd in return for 40usd. Lot size would be 0.5 mini lot with a s/l of 50 pips and t/p of 80 pips. Price to enter is yet to be confirmed as I'm still waiting to catch a proper price at this moment.
Updates would come up later. Time for Bloomberg TV!
A New Trading Life
It has been pretty long since I traded with my own money since the last time I broke my account. During this period of emptiness, I decided to improve myself by going back to demo trading and not losing touch with the markets, and also to read up more and see where I could be improving myself on.
So the day before, I went down to DBS and made a USD500 deposit into my InterbankFX account, which totaled up to approximately SGD770. However up til now, there are still some issues with my InterbankFX account, which are pretty crucial, i.e. I can't click on the "new order" button.
The trade which I am looking out for this week and next week would probably be going short on the EUR/AUD.
Hourly Chart of EUR/AUD
As we can see,the hourly chart of EUR/AUD indicates a downtrend to short for the short-term. A good price to go short could be at 1.6750 with a t/p objective at 1.6650. S/l would be good at 1.6810 as 1.6800 would be a physchological number to break. With stochs pointing downwards and the MA(5) crossing below MA(8), this shows a good short. Coupled with RSI(8) falling below 50, there shouldn't be any doubt going into a short position for the short-term. This trade provides a good R/R of 1:1.7 approximately.
Daily Chart of EUR/AUD
The daily chart is indicating signs of a downtrend as well for the pair. However to be double confirmed of the short position, it would be good to wait for the MA(5) to cross under MA(8) before entering into a medium-term short position. With the stochs pointing downwards as well, this shows a good indication for a short position. However, RSI(8) seems to be hanging slightly above 50 at this moment. We could probably see it cross below 50 by next week and then we would then enter short on that position. For this trade, I would look to short the pair at probably 1.6700 with a t/p objective at 1.6200 coupled with a s/l at 1.6960, the high price 2 days ago. R/r for this trade would be 1:1.9 approximately, a pretty good trade.
For all of the trades, an optimal risk level would be at 5% of capital for the total stop losses to ensure that you would be protected against overleverage.
That's all for today! Back tomorrow.
So the day before, I went down to DBS and made a USD500 deposit into my InterbankFX account, which totaled up to approximately SGD770. However up til now, there are still some issues with my InterbankFX account, which are pretty crucial, i.e. I can't click on the "new order" button.
The trade which I am looking out for this week and next week would probably be going short on the EUR/AUD.
Hourly Chart of EUR/AUD
As we can see,the hourly chart of EUR/AUD indicates a downtrend to short for the short-term. A good price to go short could be at 1.6750 with a t/p objective at 1.6650. S/l would be good at 1.6810 as 1.6800 would be a physchological number to break. With stochs pointing downwards and the MA(5) crossing below MA(8), this shows a good short. Coupled with RSI(8) falling below 50, there shouldn't be any doubt going into a short position for the short-term. This trade provides a good R/R of 1:1.7 approximately.
Daily Chart of EUR/AUD
The daily chart is indicating signs of a downtrend as well for the pair. However to be double confirmed of the short position, it would be good to wait for the MA(5) to cross under MA(8) before entering into a medium-term short position. With the stochs pointing downwards as well, this shows a good indication for a short position. However, RSI(8) seems to be hanging slightly above 50 at this moment. We could probably see it cross below 50 by next week and then we would then enter short on that position. For this trade, I would look to short the pair at probably 1.6700 with a t/p objective at 1.6200 coupled with a s/l at 1.6960, the high price 2 days ago. R/r for this trade would be 1:1.9 approximately, a pretty good trade.
For all of the trades, an optimal risk level would be at 5% of capital for the total stop losses to ensure that you would be protected against overleverage.
That's all for today! Back tomorrow.
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