Forex Trading Diary 20th Jan 2010

Quick update on the week so far, I lost another 30 pips yesterday and made back 20 pips. When you trade, it is advisable, that you you close and open your computer in the morning so there are no hiccups! I didn't, and lost connection when I was recovering my 30 pips lost. 

My god you should have seen the panic on my face when I realized I had lost connection. Then the computer crashed...As Alex Ferguson would say it was bum squeaking time! It proved my lucky day and after 10 mins of panic, I logged back in and still had the opportunity to take 20 pips.

I was in profit by over 30 pips at one stage! After a year and a bit of trading the school boy errors have not been completely eliminated!

This morning I have taken a conservative 12 pips with the rest of the day to go. The new strategy I am testing has so far been 85% accurate and I think its time I started using it! But here is my morning trade so far, when you see the chart you will notice there was far more available. A retraction of the high in the last couple of days!

Date:        20 JAN 2010
Reference:    DIAAAAAEZSZ6VAF
Size:        Buy to close
Open Level:  16286
Market:      Spot FX GBP/USD 20 JAN 2010
Level:        16274

Another problem this week has been the major movements on the forex pairs from 12 midnight to 2. From what I can gather, this is being created by the Chinese. I don't see announcements for them on forex factory too often. But it has meant movement has been less when the market opens at 7am!

To Your Trading Success!

Forex Trading Diary Mon 18th 2010

Lets hope this week is far better than last week! I ended up 40 pips down...Not good, having said that I think it was one of the few weeks, that I have not really been focused. The other problem is the continued channeling of cable.

Getting pips is proving difficult due to lack of volatility in the morning and small range breaks. Last week I noticed that more breakouts occurred between  2 - 4pm around when the yanks started trading.

I also followed a few forums and looked at some expert analysis, and none of them are very clear on direction. The question is are we out of recession? Has the dollar recovery began and faded away? I am not sure anybody is any wiser than you or me?!

Because I am focusing less on the other currency, I am a bit out of touch with the slower moving pairs. In addition, I have two new strategy's on my plate which I am testing at the moment. At the end of the week I celebrated my day of birth, I had an interesting weekend!

Onto this morning, Happy Martin Luther King Day if you are from the US and reading this blog. Because of this the Americans are on holiday today. For all my complaining, cable gave signs for a slow long trend this morning.

No yanks later to stir the market did not  worry me too much on volatility. The Americans are normally not awake anyway at this time of the morning. My only concern was a small possibility that no over night US news could keep volatility low.

It proved correct and it was a slow march up this morning. I entered the trade after it broke the pivot, I should have been in earlier but wanted more certainty. 16332 and exit at resistance 50 level, It so happens I got out way too early, had I used a trailing stop loss I could have easily taken 60 - 80 pips .

After last weeks performance money in the bank is whats required. I took the 20 pips and very happy with them too! Cant leave without touching on the horrific earthquake in Haiti, they have many peoples thoughts and well being with them at this time.

To Your Trading Success!

Forex Trading Diary 12th Jan 2010

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Back to trading for 2010, a long extended break after the festive period, then spent a week tarting up the blog. If you are a regular reader let me know what you think.

The volatility is back in the market but less bigger trends at the moment. I have adjusted my trading style for this period as I felt I had one two many losses for my liking as we ran up to Christmas. It has been said that you need three strategy to be a successful trader.  

1. Strategy for a trending market  - This is great for huge points especially using a trailing stop loss.

2. Strategy for a channeling or oscillating market - For low volatility periods and indecision times.

3. Breakout Strategy - Classic and essential, my personnel favourite.


Review of my trades before Christmas showed me I was missing points because I was holding on for far too long. I then decided to get out at breakeven if the trade started going against me. But this created far too many breakeven trades.

Interesting day on Monday, due to lack of time I did not take any screen shots. But pulled off broker numbers so you can look at the trades on your own charts.

Date:        11 JAN 2010
Reference:    DIAAAAAEWMSUUAC
Size:        Sell to close
Open Level:  16117.2
Market:      Spot FX GBP/USD 11 JAN 2010
Level:        16126.8

Date:        11 JAN 2010
Reference:    DIAAAAAEWNKHAAL
Size:        Sell to close
Open Level:  16115.1
Market:      Spot FX GBP/USD 11 JAN 2010
Level:        16134.4

Tuesday was a good day of strong trading, but it was three trades for a total of 34 pips. Very unusual for me, but great that the adjustment is working.

















                                                                           Not shown on the below chart was a pivot around my entry point, without it my trade looks a bit random!

I have now added two additional indicators to my trading, stochastics and the ma 100. I have used the ma 100 in my previous days of  trading oil. Added to the the ma21 or ma20 it gives a great indication of the trend or non trend!

Stochastic is to complement the Macd. The Macd indicator was created in the 1960s, and some believe its out of date? I have had great success with it, but feel in a channeling  market, that stochastics will support my desicions better!

To Your Trading Success!