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.