Unfortunately, my winning streak was broken the other day (18th May) when I sold the EURJPY at 13016 and got stopped at 13050 for -34 pips. The market had been trending upwards and I thought that the momentum was running out of steam and hence the short.. the market briefly dipped and I felt this was my cue to enter.. however, it turned out to be a fake sell pattern and the price promptly went upwards to hit my stop.

The lesson here is to be careful when trading against the trend. I find myself finding these sort of momentum plays quite alluring.. I need to be careful when trading this way as it is risky (but rewarding if it goes the right way).

Tags: eur/jpy, forex, Forex trading, spreadbet blog, spreadbetting blog, trading loss

Last night, I went short on the EURJPY after it looked like it made a double top.. I got in at 123.35 with a stop at 123.85 (50 points). I had a target of 124.65 and it got hit.. as I write this, the price action is at 122.85 which is almost 200 pips lower.. oh well, profits on the table but I made my 70 pips!

I am using the longer term charts meaning 1 hour and 4 hour charts to time my entries rather than the 5 mins and 15 mins before… although you still may not get the perfect entry, at least there is more chance of it going the correct way despite pullbacks and stuff!

Tags: currency trader, currency trading, double top, double top eurjpy, eur/jpy, Forex trading, pips

Yesterday I complained about the AUDNZD trade shooting through the roof after I had closed my trade. I said that I would enter new trades with a 50 pip trailing stop loss on my Forex trading.

Well, last night, I found two more potential candidates in the Forex markets… the EUR/CHF and the EUR/JPY. Both charts had the stochastics cross and the change in the trend moving average indicator.

The EURCHF had previously cross the day before and I had traded this signal to find that I had got caught in a bulltrap as it had stopped me out for -50.

Anyway, a signal is a signal and on the EURCHF, I entered again when the signal presented itself. Also, now you have positive divergence after the previous failed signal which gave me a bit more confidence in the trade. So, I put on my trade at 16082 with a 50 pip trailing loss and then went to bed!

The EURJPY was showing the same thing so I did the same here also.. went long at 16242 with my 50 pip trailing loss.

Anyway, I woke up this morning to find that my trades went my way… it was really tempting to take profit but I witheld and make my journey into work. A few hours in at work, I check the charts again and my trade was still positive but momentum was starting to dwindle. At the back of my mind, I knew that I should just leave my trailing stop.. both trades had moved significant in that the EURCHF had moved enough to ensure that my trailing stop was now at breakeven (worst case scenario, scratch trade) and the EURJPY had moved over 100 pips and that the stop loss had moved to ensure that at the worst case scenario I had 50 points. The stochastics still had room to go and the lack of momentum along with the pips galore meant that I took my profits for +65 (EURCHF) and +112 (EURJPY).

What a pip-fest!!

Anyway, I have come home now and look at the charts, the EURCHF has moved a further 45 pips and the EURJPY has moved a staggering extra 170 pips!!!

Now I feel silly for not sticking to my plan. It is really difficult not to take a profit… trading goes against our natural inbuilt inclinations which is what makes trading so difficult to master. You have to do the opposite to what centuries of evolution has made us…. I knew that the trailing stop was the gameplan but still, I was unable to hold out.

Once again, I failed the trading adage, cut your losers and ride your winners!!

Anyway, have a look at the charts!

Tags: charting, cut losers, daytrade, daytrader, eur/jpy, eurchf, fibonacci, foreign exchange, forex, hard not to take profit, long, makemesomemoney, pip-fest, pipfest, position trader, positive divergence, run winners, short, Spreadbetting, stochastics, stock market, Trading, trading adage, trading advice, trading blog, trading psychology