Cancel Pending Trade

It looks like the USDCHF (link here)has already taken its breather, and so another bounce is a bit more risky now. For this reason, I'm going to cancel my pending trade.

Pending Trade

Check out the USDCHF chart posted below. Price is approaching a high resistance zone very rapidly and part of the chart is beginning to look symmetrical. With price dropping this fast, it might stop for a breather, and a resistance zone is a perfect place. Because of these reasons, I'm going to to put a BUY pending trade at the resistance zone with a very tight stoploss.

BUY USDCHF

Price: 1.00321

Stoploss: 1.00200

Take-profit: 1.00726

Potential profit: 40 pips

Potential loss: 12 pips

Reward/Risk ratio: 3.33

Closed Trade: EURGBP

It seems that our stoploss might have been too tight. The trade was closed with a small loss of 19 pips.

New Trade

I'm trading this as according to my previous post found here.

SELL EURGBP

Price: 0.89048

Stoploss: 0.89230

Take-profit: 0.87961

Potential profit: 18 pips

Potential loss: 108 pips

Reward/Risk ratio: 6

Closed Trade: EURAUD

Our long EURAUD got closed with a healthy 63 pips profit (see the prediction made on 08/11/2009 below). A good start to the week.



Adam

Pending Trade

I'm trading this as according to my previous post.

BUY EURAUD
Price: 1.60970
Stoploss: 1.60800
Take-profit: 1.61600

Potential profit: 63 pips
Potential loss: 17 pips
Reward/Risk ratio: 3.71

Trade Ideas

Here are two charts that caught my attention today. The first 4H EURGBP chart. We see the trend reversing from up to down, forming a triangle along the way. This is usually a continuation pattern, so I would expect this pair to go down in the next couple of days. Potential gain is about 130 pips (about 128 if you include the spread).

The other chart is the hourly chart of the EURAUD pair. It looks like this pair is heading straight towards a resistance zone, where most of the time you can expect a bounce. Potential gain is roughly 50 to 60 pips, and the broker I'm using (Alpari UK) has an 8 pip spread on this pair, so it's really between 42 and 52. This would mean that my stoploss will have to be only about 14 pips below the resistance line, which is a bit tight.

IMPORTANT: if you are following this, make sure you are familiar with my trading rules posted here

Welcome

Welcome to the first blog I've ever made. Surprisingly, it only took a couple of minutes to create; I thought it would be a headache. I made this blog mainly for myself, so I can keep track of my trades and learn from my mistakes, but if it helps beginners or anyone else please let me know as this would give me more of an incentive to share my thoughts and update this.

Firstly, I'm a big fan of simplicity: after all, to make money all you have to do is buy low and sell high. Here are my personal trading rules:

1. Use only price action. This means trendlines, supports and resistances; no fancy indicators.
2. The potential profit must be roughly at least 3 times the potential loss. This is because the market is unpredictable most of the time; if we're right, we want to be very profitable whereas if we're wrong, we only want to make a small loss. This is the opposite of a blown account.
3. Never risk more than about 3% of your balance on a single trade. We don't want a blown account.
4. Trade aggressively. Whether we make a trade today or exactly the same one a week from now doesn't affect the outcome -- it only delays it.
5. Do not add to winning or losing positions unless it's a separate trade. Yes, you might make more money, but you might lose more money too. The only time we add to a trade is if we spot a new pattern on the chart, and this trade will have a stoploss and a takeprofit as according to rule #2.
6. If a trade is not going to plan, exit it. This includes winning trades. If what's happening wasn't what we thought would happen, then the fact that we're making a profit could be down to just luck.
7. Close all positions on Friday evening. This is because we cannot amend positions over the weekend.

Good luck,

Adam