I didn't take any trades this week. Tons of opportunity on UJ and EJ but just didn't get a chance to look at the charts. My trading style gives me the opportunity to takes trades when I am not in front of the screens but I have a rule not to take any trades if I cant actively manage them. I'm still up 16% for the month and hopefully next week brings more screen time opportunity for me. I would like to break the 25% for the month but I definitely wont force it. Heres to next week!
UJ (USD/JPY) was getting close to entering a critical daily and 4 hour zone. This was one tricky zone when planning the trade. There were three possible trade zones that were all relatively close to each other. This is one of those trades that can be difficult to judge when setting up. After analyzing current price action I decided to place my trades in a 4 hour zone with a tight SL. This ended up not being the correct point of entry. However, I had known that there was a possibility this could be incorrect and that price could shoot slightly past this area. It did. I also knew that if price was capable to get to the top of this range that there would still more then likely be a pull back. UJ had been rallying for hours. there needed to be some sort of pull back. The first two trades I set up ended up being losers. In fact where my SL was set was the second area of interest for me. It was the top of the range. I noticed price was making reversal candlesticks, so with my knowledge of this sort of price action in areas like this I loaded up sells. I placed my TP for these trades where I thought price would stop dropping and then return back to the highs. This ended up being correct placement for this trade. Below is a picture of these trades along with my two losers. I ended up the day up 11% on my account which brings me to a total of +15% for the month and 120% up total on the account.
EJ (Eur/Jpy) had a very similar setup as well but I did not trade it. I only trade two pairs U/J and E/J. I find they work the best with how I trade. Also by only focusing on two currencies to trade my accuracy and patience for optimal trades has only increased. It can become overwhelming trying to focus on all the majors. I would know, I use to attempt that madness. If you are struggling with trading I suggest dropping down to just one instrument to trade. Out of all the instruments if you don't have one that you are fond of I would highly recommend U/J. It doesn't typically have huge swings and is very predictable. This will help keep your account alive if you are new to trading and still trying to figure things out.
Its been awhile since I have used this space to actually jot down trades or talk about trading. I have been on a hiatus from trading due to ups and mainly downs of life but I intend to make the best of trading this time around. I wont go into detail about life and how it has got the best of me since that is all behind me now. I will use this spot once again to either jot down my trades or to just spew out anything that has to do with trading that is on my mind.
I have a new account that I am opening up with an offshore company. Yes I am located in the US so there are not very many or decent options when it comes to brokers. The industry in the US is a joke, the government really chokes out anyone except the chosen two that try to get into the industry. So with that said off shore is where I will be depositing, I haven't decided exactly which broker but it will be one of the recommended ones on babypips. If you haven't seen the thread on babypips that has verifiable offshore brokers then I recommend you check it out if going off shore is something your looking at doing.
I have a new theory and trading technique that I have been working on for over a year now. It is incredibly easy and basic. I wont go into much detail about it in this post but will in my next post. Believe me when I say its easy, oh and its naked. As in I do not use any indicators! So no more divergence or support and resist indicators. Only indicator on my chart is a clock that shows close time of current candle and spread.
I am looking forward to contributing to this page once again. Im not sure how long I will contribute or how engaged I will be but I believe its a good idea to get my trading thoughts out in some form. There are not a lot of people who trade or who want to even know how, so it can be kinda lonely. This blog is for my thoughts to share with someone other then myself. So please read and if you have any questions or words of encouragement add them below. Thank you.
This has been overdue, I have a few trades I would like to go over and one in particular that was a great learning experience. I will start off with the trade I learned the most from.
Price had entered into a proven support and was also at 1.11500 level. As you can see price and RSI are doing two different things which means its time to look for a reversal candlestick. So I found one and jumped in.....and then nothing happened. So Fridays are different then any other trading day and the reason is after London close the markets are done...they are whisper quiet! As you can see I entered the trade right around London close and the market went sideways. Now one rule I have is never ever leave trades open over the weekend. Why? Anything can happen over the weekend that can affect where price opens on Sunday night. I have no control over where price can/will open on Sunday. So being that there was no trading volume due to the time and that Friday was almost over I pulled my trade for a loss. Learning lesson, do not open trades after London close on Friday.
Yesterdays trading day was a slow one for divergence traders. There wasnt much on the table for us but I managed to still find a spot for a small scalp.
I kept a close watch on USD/CAD yesterday pending oil news. After USD oil news was released this pair had some volume and created opportunity. As you can see around the 1.30000 area RSI printed divergence and price action created a long lower shadow or hammer (candlestick highlighted) whichever you want to call it. This is a bearish candlestick and with divergence printing and price being at a round number I jumped in with a sell. Fortunately price moved quick and came within 5 pips of my TP. I had to manually close the trade once I realized price was going to make quick turnaround. So I got out of this trade with a small profit.
At the end of the month I will post my results, stay positive my friends!