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 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!