Monthly Archives: January 2013
Weekend Trading Update. Cable And Ozzy Move Lower, Euro Breaks 134.
Cable And Ozzy Move Lower, and Euro Breaks 134 this week. We have seen a pretty sustained move down on Ozzy Dollar this week with Thursday and Friday seeing the biggest falls. We did have a little 25 pip bounce on Ozzy at the 104 level, but the trend is down so we may see another push down on Monday before a bit of profit taking takes place either late Monday or early Tuesday.
My target on Ozzy for next week is 10377. I think we will see a bounce at that level, whether it will continue up or not from that area depends on what the price action is doing at the time. I will be taking a long position in Ozzy at that level as i see that trade as good value at that price.
Ozzy has been rising since the October low at the 10150 level mainly due to traders hedging Euro short positions in my opinion, as the rollover charges you get paid for buying AUD will cover the charges you are paying to keep Euro shorts open. Now the Euro has taken out most of those short positions and the market is net long Euro, the AUD hedge trade is no longer needed, hence the sell off from 10590. Weakness in Euro will see more short positions added which will see AUD rise again.
Cable has been moving down steadily from the 16300 level and currently sits at the 15800 level. That’s a 500 pip move in 3 weeks. Cable weakness is on the back of a flow of poor data out of the UK, plus the speculation of a possible downgrade in the pipeline, and further QE. Cable hit my target at 15750 and we have seen a nice bounce from that level. If the price continues down next week and breaks the 15750 area i think we could see a move down to the 156 level, and then 15550 after that. I know it sounds like i am just picking round numbers, but i am not. I can back up all of these moves with charts and price action, but i am not going to share that here, that info is what i will be teaching you if you decide to take my Forex training course. My price targets are extremely accurate, and that is what my training course is all about. Entering and exiting the market at the correct level.
Euro has finally broken out of its sideways trading range and broken the 134 level currently sitting at 13460. Goldman Sachs have a target of 137 for Euro Dollar so we could see it go there in the next couple of weeks. My immediate target on Euro Dollar is 13502. I will be looking for a shorting opportunity at that level, if price action gives me what i am looking for.
I have had a pretty good week this week, but i have also been busy with other stuff so i have not taken as many trades as normal. Trading Forex is all about a work life balance, and although i would love to sit in front of my trading station all day and bank pips, i do have a life outside of trading and this week i have decided to enjoy it a bit more. As we get into spring and summer i will probably be taking less trades than normal. I like to enjoy the summer months and spend some of the money i have banked over the winter.
Here are my trades for Thursday and Friday.
4 trades on Thursday as follows.
AUD short at 10514 down to 10594 for 20 pips.
Euro short at 13388 down to 13367 for 21 pips.
Cable long at 15770 up to 15807 for 37 pips.
AUD long at 10455 up to 10472 for 17 pips.
2 trades on Friday.
Cable short at 15825 down to 15750 for 75 pips.
Cable long at 15750 up to 15805 for 55 pips.
Total trades for the week 11. Total pips 459.
Have a great weekend, and if you are trading next week have a good one. 🙂
Midweek Forex Trading Update.
Forex trading on Monday was a bit of a write off to be honest. Everything was going sideways, and i don’t like trading when currencies are doing that. So no trades to report for Monday.
Euro Dollar has been in a funny mood all week, and been very hard to trade. Very little price action set ups. I have scalped a few pips, but no major pips in the bank for Euro so far this week. I have had a bit of success with EJ though, that has been moving around a bit so i have managed to get some good trades on that one.
AUD is moving in a very tight range at the moment so that’s not really moving enough to get any decent trades on. We did get one trade yesterday on AUD at 10576 down to 10556 for 20 pips. The other trade we took yesterday was EJ long at 11762 up to 11800 for 38 pips. So 58 pips for yesterday is not too bad.
Cable has also been going sideways this week, but i think we are due a move up on that one. It seems to have formed a triple bottom. Cable is quite weak at the moment though as everyone is expecting the UK get downgraded at some point in the near future. I think the downgrade is in the price, but they are also talking of further QE so that could push it down a bit further. I have a target at 15770 area that may get hit at some point this week. I may take it long at that level, it just depends on what the price action is telling me at the time.
So back to today. First trade of the day was EJ long at 11740 up to 11814 for 74 pips. We then had EJ short at 11822 down to 11785 for 37 pips. I also took a trade on USD CAD at 9905 up to 9970 for 65 pips. I have been looking at Dollar Cad as another pair to add, along with AUD JPY. The only problem when following too many pairs is you can miss good set ups on other pairs. I am currently looking at 6 pairs so hopefully i will start posting more trades on USD CAD and AUD JPY soon.
I have also decided to make 2 blog posts per week, but make them a bit more detailed, with a bit of market analysis thrown in if i have time. I will be doing one at the end of the week, either late Friday or Saturday, and one midweek.
I don’t think the short quick update posts do much for the quality of the blog to be honest. So i am going to stop them. I cant really see the point in having 100s of posts with just half a dozen lines in. It just clogs the blog up and makes it harder for people to find the good stuff. 🙂
Have a great trading week, I will update the blog with more Forex trading at the end of the week.
Forex Trading Update For The Last Few Days. 710 Pips This week.
Hi guys. Sorry i have not updated you with any trades in the last few days. I have been very busy and have not had the time to update the site. I don’t really like working on a weekend but i have been doing a bit of chart work so i thought i may as well update the blog at the same time. 🙂
OK I updated you on Mondays trades so the rest of the week was as follows.
Tuesday we took 2 trades.
First trade of the day triggered Monday evening, it was EJ short at 11997. As i was sleeping at the time i was very happy to open my account Tuesday morning to a 150 pip move down. I closed the trade at 11836 for 161 pips profit. I have not had a profit like that for a while. I think the main reason for this is that i was asleep and could not close the trade, so it ran for the whole 9 yards so to speak which was very nice.
Next trade on Tuesday was Euro long at 13266 up to 13310 for 44 pips.
Wednesday we took 2 trades.
First trade of the day was Euro short at 13324 down to 13304 for 20 pips.
Second trade was Cable long at 15975 up to 16005 for 30 pips.
Thursday we took 3 trades.
Euro long at 13283 up to 13369 for 86 pips.
EJ short at 11949 down to 11914 for 35 pips.
Cable long at 15958 up to 15996 for 38 pips.
Friday we took 4 trades.
Euro short at 13396 down to 13356 for 40 pips.
Cable short at 15996 down to 15930 for 66 pips.
Euro short at 13366 down to 13346 for 20 pips.
Euro long at 13279 up to 13330 for 51 pips.
Total trades for the week was 14. Total pips was 710. What a cracking week boosted by the 161 pip EJ short and 86 pip Euro long.
This is going to be a great year. My target is a 1000 pips plus week. I think i will have to trade more pairs to hit the 1000 pip mark. I am looking at adding AUD JPY to my pairs so that could boost me up to the 1000 pip mark on a week like this one.
Have a great trading week everyone. I will try and keep you updated on trades next week as i take them.
Oh by the way, I have added an earn while you learn Forex trading option to my training courses, so you can copy the trades i am taking in your own account while you are learning my methods. A few people have asked me about it in the last few weeks, so i have decided to do it and i think it will be a good thing for new students. My Forex training course is not cheap, so if you can get some of your money back while you are learning then its all good. More info here.
How To Control Your Emotions When Forex Trading
Learning to trade Forex is hard enough, but that is only half the battle. Learning to control your emotions when you trade is another skill that you need to master in order to become successful.
Many traders can trade demo accounts quite successfully, but when it comes to trading with real money they fall apart. This is because they trade emotionally when real money is involved.
I have been trading for many years but even i trade emotionally from time to time. I think it is impossible to completely remove emotion from your trading, but learning how recognize it and how to control it will be a real benefit to your trading.
If you find that you are having problems with emotional trading there are things you can do to help.
Fear and greed are the 2 main emotions that you have to deal with when trading. Lets look at fear first.
Fear is basically a fear of losing your money. If you are struggling with this then the first thing to do is to reduce your lot size, or your price per pip. If you are trading with more money than you are comfortable losing then you will be trading emotionally. I don’t like losing, and to be fair i don’t have many losing trades, but they do happen, and every time you enter the market there is a chance that your trade will be a losing trade, and if you are not comfortable with your potential loss you will trade with the fear emotion.
The next thing you can do is to take more trades. I know this may sound a bit weird and a lot of traders will tell you to take less trades, but this in my opinion will just compound the problem, as taking less trades will make you focus more when you do trade, and make the trades you do take more emotional, and you will also miss out on some good set ups, which will again add to your frustration. Taking more trades with smaller lot sizes will help your emotional trading problems.
Lets now look at greed. Greed is harder to master than fear in my opinion. Lots of traders will talk about risk reward in Forex trading. Where you have to have a 2 to 1 risk reward ratio to be able to take a trade. This strategy will compound your greed problems. A good way to deal with greed is by taking less pips profit per trade.
For example if you are targeting 30 pips per trade take 25 instead. If you are targeting 15 pips take 10. Get used to taking less pips per trade and you will feel good about it, and be more in control of your trading. A winning trade is a winning trade no matter how small the win. Waiting for your target to get hit will not help your greed problems, especially if the market reverses 5 pips from your target. Taking less pips and getting more winning trades will also help your fear problems too, so its a win win scenario.
Knowledge is also a big part of helping to combat your emotions. If you are trading with a tried and tested Forex trading strategy, and you understand what is going on in the market, then dealing with your emotions is a lot easier to do.
I hope that this post has helped you understand the importance of controlling your emotions in Forex trading, and given you some ideas on how to manage your emotions.
For further help with managing your emotions please consider my Forex training and mentoring course info here.