EURUSD trade

A new trade is to be taken. This is on the EURUSD and will be a sell order. The trade was taken at 1.22739 with a lot size of 0.02. SL is 1.23167 (43 pips) TP is 1.21953 (78 pips) Let's see how this one plays out! 0.02 is the usual lot size going forward according to my money management rules, it is not a win or lose on then double the lot size - martingale systems are destined to fail every single time. I have some advanced money management software that let's me win 10 and lose 10, and I will still make money - or lose 10 and win 10, and still make money!!!

Upcoming trades

There are a couple of potential trades on the horizon, there was nothing last week except one I missed when i was on holiday which was on the EURCHF.

When we could have got in, there would have been roughly about 120 pips in profit.

Again though, I decided not to trade as the set up was not ideal, and as mentioned over and over again - I would much rather be 1 or 2 pips in profit than have a bif drawdown and look back saying that it was not a perfect setup! This will be waht distinguishes a trader from a gambler...

I know what bracket I would rather be in!

Happy trading!

Stopped out

Well, The trade I took this morning was stopped out with another profit!

This time I was stopped out at a profit of 46.9, as I moved by SL to 1.34000 over the course of the trade.

I should point out that I considered halving my position and putting the SL at 50%, so I would have had some profit, adn the ability to let the remaing half run.

I chose instead jsut to move the SL up when i was in profit by about 65 pips, as I am more than happy to take the full profit early as it means less of an effort in tracking the trade over a course of a few days.

What I am trying ot do at the moment is to reduce the maximum stop loss but keep the risk the same, so when I am in profit, I earn a lot more.

I have detailed this bfore, but by halving the maximum stop loss (from say, 150 to 75) I can double my position sizing (from 0.1 to 0.2 for example). This means that I do not have as much wiggle room in terms of price movement into drawdown, but at the same time I DOUBLE my profits.

So far I have not documented original stop loss levels and position sizes, but maybe I should?

Anyway, another profit!!

Happy trading!

New trade on EURUSD

A new trade was opened on the EURUSD about half an hour ago.

I got into the trade - a sell @ 1.34469.

I have already moved the stop loss to break even, so I now have zero risk on this trade. It is good to let these ride... The great thing about this trade is that it has broken some really massive resistance, and the next major support level is at about 1.31... so we could be looking at quite a nice little profit on this one (although the cliche 'famous last words' come to mind)....

Already I am in profit, and with the safety net of the stop loss being at break even, I am kind of feeling pretty good about this trade.

Putting the stop loss at break even straight away is a major psycological boost to your trading, and yet it could easily swing back and take away any proifts, but the major thing is that I have absolutely no risk - zilch - to my account, so even if this took a massive reversal, the most I could lose is nothing... How brilliant is that!!! This has got to be the single most best thing I have ever learnt.... and that is no lie. The strategy itself is great, but once I am in proift - I can not not lose. A similar thing can be used by using trailing stops. Although very very useful, I am taking more of an active look at the trades, and trying to determine what should happen with it. It is all a learning curve of course, and in the last two trades, the stop loss was put at a level that meant they were stopped out for relatively small gains when the trades themselves could have gone on for many more pips... HOWEVER, they were stopped out at what was a pretty huge resistance/support level, so despite the fact they were stopped out, I made a profit on something that could have easily gone the other way and wiped out those profits and could have easily gone on to be a loss.

Something I learned a long time ago was never complain about a profit. This means taking small profits despite the fact that a trade goes on to make HUGE gains. If you always make a profit, that is great, if you make 1 or 2 losses, you could be in huge draw down which is not good!

Anways - here's to happy trading!!!

Trading rules

So after yesterdays closing result of +220 pips, we now need to look to the future.

Looking at the charts, most of them seem to be trending quite strongly, which is great for getting on the band wagon, however this does not suit with the trading rules of getting into a trade - all the analysis is off at the moment (well except for one indicator, but I need all of my indicators to line up before I enter a trade - which makes this strategy so powerful). This means that we have 2 options:

1) Look at shortening the timeframe of the charts - I am trading on a 4 hourly time frame, which means that I have lots of opportunity for the trade to go in the direction I want, and also for it to get the maximum profit while at the same time minimising my risk- this marying off the best profit conditions, with either the ndicators pointing to get out of the trade due to sudden movements - this will actually mean we get out before a stop loss is hit, or if it is a slow moving turn in the charts, we simply go to the stop loss and get out automatically.

2) Wait until the markets change.

There is a great book called market wizards, which goes into detail about incredibly successful traders and their ability to ride the highs and lows - it is a really intriguing read (you can get it from Amazon - see the link on the right. The reoccurring thoughts in the book is that trading has to be emotionless, and the more greedy you are, the more you will lose. For that reason, I am not overly bothered about jumping into another trade, especially one where the trade is on a shorter timeframe where I am not prepared to sit in front of the charts waiting for something good - or bad to happen.

From this, the option 2 is the prefered solution. We will wait until a good trade comes our way. This system will make money regardless if we have to wait 100 more days for them to change (which lets face it, it won't happen). This was shown with my earlier analysis on the USDCAD pair, where, if I had not been so focused on the EURUSD pair we actually traded, We could have been up about 500 pips by today (although I think we would have been stopped out at during one of the previous days...). Out of two trades - one actual, and one promised, but not executed, already the system is looking good. I still will not be drawn into believeing that it is foolproof just yet, but the signs are looking promising at the moment.

Anyways, here's to a good weekend, and let's hope that next week we can get even more winners as the markets hit their peaks and bottoms and start to look to change (of course, in this climate, who can say if that will happen?....... ok My strategy can ;-) )

Trailing stop triggered

My trailing stop was triggered - I had it set at 50 pips, and it was stopped out at 1.34356.

This gives us a massive profit of 220 pips for a 4 days being in the trade.

A great first result i think all round. This has increased my account size by $22 with a max risk of only $15.

So we will now wait until the next trade. I am going to create a table to show all the trades (winners and losers when (hopefully not though!) and if they come.

A great first effort, and gives us a running total of +220 pips.

Normally, I would increase my sizings as my account goes up, but I will only give points results on here for eases sakes for looking at winners and losers. In real terms it is even level stakes.

My belief is that this was on the high side of what I would expect, but certainly not what i want. The EURUSD was in a massive down trend, so when we get these - and we will, we canreally look to proift handsomely off them.

Good trading!!!

The profits are coming in and guaranteed

So the EURUSD has sunk again, and we are firmly in profit on our trade, 100+ pips. All this and not risking 3% of our account. With an account of $500 (which i have) I had a stop loss at 150 pips, so this would equate to $15 in real money (as i am only using micro lots - 1 pip = $0.10). It did get a little bit hairy yesterday, as there was a massive jump, but the real point is having firm rules to get in and out of trades is a must.

As of writing, the EURUSD is sitting at 1.35272, and is on a downward trend (although I expect it to bounce back up and then continue it's downward trend further). Due to having a guranteed profit, I want to let my profits run, and especially because the recent trend, and the breakthrough of the resistance says it is going to go lower. This is where having a trailing stop comes in very handy. The trick is choosing by how much you let it trail to allow enough room for you to get more profit, without losing all your gains. I have my own rules, and expect there to be more to be had out of this trade.

I could have been in another trade on the USDCAD, but missed the boat through one reason or another, so we missed out on that. Not the worst thing to happen as there will be more trades. The first and most important thing is to be making money, and this has been achieved in this trade.

Heres to some more profit in the next couple of days!

Happy trading!

First trade activated

Ok, the great news is that we have our first trade that has been activated.

This will be to sell the EURUSD.

We will see how this goes, but the trade was executed when the rate was 1.36552. so anything below this we are in profit (minus the spread of course, but for eases sake as already mentioned, I am not taking this into account. Hopefully the wins on this will make the spreads pointless (because we are looking at a decent size profit, although it does of course mean that it will not be 100% accurate (although it will still be 98% accurate give or take a percent). The reasons for doing this is to prove it works, and show that there is undeniable profit potential in this strategy.

One thing to remember, I am not aiming for the highs and lows, to predict them 100% is impossible, so if we go in the red, that is not a problem, we are looking for the trend here, and there will be some ups and downs, as long as the downs and ups get lower and lower, that will result in a profit for this one trade.

I have decided that, the $250 starting bank is not going to be adhered to. I am going to do this on a points basis as it will make it a lot easier to present and will be easier on the eyes when trying to compute the information... Needless to say, depending on the lot sizes you want to use, says how much you win or lose, so risk and the rest can be assesed on that basis.

Happy trading!

EURUSD to watch

My next currecny to watch is the EURUSD. I hav eseen some movement which may be profitable. Obviously over the last few days, the EURUSD has been falling quite substantially and I would not be suprised if it had just about bottomed out, however, my charts are telling me that it could continue a decline.

If I had started this test a few months ago, I could well have been quids in, and increased my account by about 100% by holding this one currency alone. As it stands though, I might be coming into this party once all the good alcohol has been drunk, and I am left with the non alcoholic drinks... refreshing but not quite satisfactory!!!

Any ways, whether I make a lot of profit or a small profit, the main thing is making a profit. Getting plus numbers is the only name of the game here.

In actual fact, I woudl not be surprised with some interesting movements in the next few weeks, and certainly trades will offer themselves over time. Patience is definately a virute, although the excitemtn and impatience to just place a trade is sometimes a tad overwhelming, having a great trading plan, with firm rules in place will stop silly trades being entered into.

Happy trading as always!