Show Buttons
Share On Facebook
Share On Twitter
Share On Google Plus
Share On Linkdin
Share On Pinterest
Share On Reddit
Share On Stumbleupon
Hide Buttons

Tag Archives: forex

The Crazy World Of Forex Trading

What a difference a day makes in the crazy world of Forex trading.

Yesterday I was struggling to get a trade, and today we have had a bucket full of them.

Where do i start? We missed a couple of nice trades shorting Euro yesterday. When i say missed, i mean we did not get filled.

The way i set my trades up is i have a price point that i want to go short or long at, i set my trade at exactly that price point. If it gets hit we are in the trade, if it does not then we miss it. I don’t chase after the train when it has left the station though, as normally there will be another train along very shortly, but yesterday the trains were on strike i think.

We managed to get one trade yesterday on Euro long for 8 pips. And that was it i am afraid.

Now to today. The first trade of the day was a Euro long trade at 13835, exit was at 12876 for 41 pips. We also took EJ long at 10047 and closed at 10090 for 43 pips. These trades executed early this morning in the Asian session. Occasionally i will leave pending orders in overnight if i think i am not going to be at the PC when they hit, this was one such occasion.

The third trade of the day was another Euro long at 12852 exit at 12876 for 24 pips. We also took AUD long at 10224, exit at 10254 for 30 pips which was the 4th trade of the day.

The 5th trade of the day was Euro short at 12907 which we closed about 15 mins ago at 12880 for 27 pips.

the 6th trade of the day was AUD short at 10259 which we closed at 10240 for 19 pips.

We also had a cable short at 16037 which did not get filled, the price went to 33, so missed that by 4 pips, the price has moved 30 pips to the downside as i type, so that would have been another nice trade.

So all in all we have had a great days trading today.

6 trades, 6 winners, 184 pips profit. Best day for a while that. I am very pleased with that, it makes up for the poor day we had yesterday, but if the trades are not there what can you do? You can only trade what you see.

If you want to learn Forex trading using low risk high probability strategies, please consider my Forex training and mentoring course here You will not make a better investment in your future as a Forex trader. I will teach you how to be a winner. 🙂

Counter Trend Trading

Today we have been counter trend trading. Counter trend trading is basically trading against the trend. Now depending on what time frame you trade you could be counter trend trading without realising it. For example if the daily trend is down, and you are trading the 15 min time frame, and that is in an uptrend you are counter trend trading the daily trend.

Trading against the trend is very risky, and should only be undertaken by very experienced traders as you can lose a lot of money very quickly trading this way. I like counter trend trading myself and often trade this way. I don’t encourage my students to do this though, but i can teach you how to do it very successfully. Its not something i do every day, but today was a good opportunity to CTT, so i did. 🙂

OK so here are my counter trend trades for the day.

We took 6 trades in total, for a profit of 58 pips. It does not sound a lot for 6 trades, but when you are countering, you cant afford to hang around waiting for big pips, you have to take what you are given.

The first trade of the day was a Euro short entry at 12953, exit was at 12939 for 14 pips.
At the same time we had an EJ short trade which did not really play out as expected so we closed that one for 4 pips profit.
The second trade of the day was a Cable short trade. Entry was at 16151, exit was at 12986 for 14 pips again.
Then we had another Euro short for 4 pips followed by another Cable short at 16170 exit at 16158 for 12 pips.
Last trade of the day was Euro short at 13003, exit was at 12993 for 10 pips.
6 Trades 6 winners.

I also have another Cable short at 16181 that is still running. I may get this off tonight for a small profit, or i may let it run until tomorrow. We should have a decent move down tomorrow in dollar pairs as the dollar has been pretty weak today but i expect it to come back tomorrow so i will be adding short trades on tomorrow, trading with the trend. 🙂

If you want to learn how to trade Forex like a pro please consider my Forex training and mentoring program. Its well worth the investment. When you know what the chart is telling you you can trade in any direction and make money. For more info please click here.

How To Enter A Forex Trade. Don’t Chase Trades

Don’t chase trades.

This is a good tip for you if you are struggling, don’t chase trades. The pros do not chase trades. When you start chasing a trade you pay more to get into the trade, and you tend to get out at the wrong time as you are trading emotionally. Set up your trade in advance so you are ready to go when the price comes to your entry, you can then trade with less emotion, and you are more likely to exit the trade at the right time, as your head is clear of emotion.

Emotional traders have a real hard time making consistent profits from Forex trading. You have to trade as mechanically as you can. If you see a set up you take it, its as simple as that. Don’t force trades either. If a set up is not there don’t trade. I have seen a few good trades pass me by in the last couple of days as i have been busy with other stuff, and i have been itching to take a trade, but i just compose myself and be patient and wait for the right trade to come along.

Some Forex traders will take 20 or 30 trades per day. This in my opinion is just gambling, you can’t possibly have 20 or 30 good set ups per day. This type of trading is very stressful and can be very costly. I much prefer a laid back approach to trading.

The correct way to enter a trade in my opinion is to do your analysis, set up your trade and wait to get filled. Jumping into a trade because you think you are missing something will cost you big time. You may get lucky and jump on a good trade, but long term you will lose with this style of trading. Also when you are in your trade try to manage it correctly and try and find a logical exit for the trade rather than just going for 10 pips, or 20 pips. If you can find a logical exit at 14 pips take it. 4 extra pips can add up to a lot of money over the course of a week.

Day Trading Verses Trading Daily And Weekly Charts

Day trading verses trading daily and weekly charts.

Some traders have different ideas on what day trading Forex is. I qualify day trading as trading anything less than a daily chart.

If you are trading 4 hour charts, 1 hour charts, 15 min charts or less, then you are day trading.

I am a day trader most of the time, but i can, and do trade longer time frames. The set ups that i use are better suited to day trading, but do work very well on the longer time frames.

The main benefit of trading longer time frames, daily and weekly charts is time. You can spend an hour or so every day analyzing the charts and set up your trades in advance. This style of trading is very good if you are in full time employment, or have other business commitments, or you just want more time to enjoy your life.

Day trading requires you to be at the PC for most of the day, looking for trading opportunities and set ups. Day trading is more exiting, but can also be more stressful. How you decide to trade is entirely up to you and each style can be equally rewarding.

This may come as a shock to some people, but the charts work the same way in every time frame from the 1 min chart right up to the monthly chart. Some trading strategies only work on certain time frames, but a good trading strategy should work equally well on any time frame. The smaller time frames are more volatile and set ups can be less reliable. You are also more likely to be stopped out of a trade if some price sensitive news comes out, but your stops are tighter on the smaller time frames, so you are protected to a certain extent.

I personally don’t trade anything less than the 15 min chart. I occasionally use the 5 min chart to manage a trade, or to get a better entry on a trade, but as far as set ups go its more likely that i will be trading 15 min, up to 4 hour time frames.

I like to trade everyday and if you are trading the longer time frames you sometimes have to wait for a few days sometimes a week or so before you get a good set up. I enjoy trading very much, and if i had to wait for a week for a trade it would drive me crazy, but each to their own. 🙂

If you are new to trading you have to decide what type of trader you want to be. Do you have the time required to sit in front of the PC and day trade, or do you prefer to take a couple of trades per week and have more free time? You can do both of course.

I teach people to trade any time frame so it makes no difference to me what type of trader you want to be, i can teach you either or.

For more information on my Forex training and mentoring program please click on the link.