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This London Trade was a little frustrating.  Click above to enlarge The trade was profitable for a little while, but then it started moving against me. I decided to close it out and go to sleep. I was a little disheartened by the previous losing trades, so I didn’t want the loss to get any bigger. It was probably just as well because price proceeded to jump up later. The final result was a -0.5% loss on the trade. This was another tough one.  Click above to enlarge Price was really choppy and went nowhere. I was looking for a breakout, but never got it. I thought that since there was such a large run up in price, there was bound to be some retracement. But it never came. The result was a -1.8% loss on the account. Another London Trade.  Click above to enlarge The setup on this one looked good. There was a long wick on the candlestick and there was a good chance of price dropping. However, it was not to be. Price jumped up before dropping later. My stop was hit again and it resulted in a -2.5% loss. Here is a London Trade with the EURUSD.  Click above to enlarge Price looked like it would head back down, so I took a short position on this trade. Things were looking good, then there was some news or something that caused the market to jump up. When I looked on the calendar, there was nothing that should have caused the jump in price. There wasn’t much I could do, I could only take the loss and move on. The final result was a -1.7% loss. Here is another London Trade, so far so good.  Click above for larger image As soon as the London Session started, price dipped down and the Stochastics was over sold. This was a good buy signal. I waited for the 15 minute candle to close and I put in two buy orders. As you can see, price dropped down and took out my stop loss. The result was a -2.5% loss. Crap, I ended up giving it all back. I should have just let the first trade go so that I ended up with a profit. Here is the chart. Pretty much the same thing as the last trade, but in reverse.  Click above to enlarge As you can see in the chart, the Stochastics was overbought and price action seemed to be meeting some stiff resistance so I decided to go short. This time I only traded one lot because if I was wrong, I knew that I would at least be at breakeven. I was wrong and lost everything that I gained earlier in the evening. The trade ended in -1.1%. In hindsight, we were already pretty far into the London session (green line) and was almost into the NY overlap (red line). I should have left well enough alone. In addition, price action was choppy and a breakout trade would have been a better bet instead of a range bounce trade. This was a case of chasing and was completely unnecessary. It is a good thing that I only traded one lot. This is one of my favorite setups and this one looked good. Price hit the R3 of the previous day and there was also a Counter Trend Trade on the previous day. This trade was on a Friday however and it wasn’t a good week of trading for me so I decided to just exit the trade and be done with it. Only one position was hit and I just wanted to get out of it. Here is the chart:  Click above to enlarge As you can see, price eventually hit the target. I ended up losing -1.0%. In hindsight, I should have left the orders in place and just set a stop loss above the resistance. There was a beat flag formation that was a pretty good signal that the trade would work. When my trading is not going to well, I have to take a step back and consider that I am making a decision under some stress. I need to take a little time off and do more backtesting, so I will be taking a few days off after the long weekend. I hope your trading is going well! Here we go again with the Accelerator Trade.  Click above to enlarge The result was almost exactly the same as the last trade this week. This time, I exited one position early at a small gain. Therefore, only three positions hit the stop loss at 6680. I ended up losing -1.5% on the trade. Here is another Accelerator Trade in action.  Click above to enlarge This was a tough week for the Accelerator Trade. As you can see, price bounced of the edges of the stack box without hitting the target. This is the kiss of death for the Accelerator Trade. I have started using hard stop losses and this trade had a 75 pip stop. The stop was hit, resulting in a -2.4% loss. This is fine with me and I am on to the next one. This was another typical Counter Trend Trade. Price hit S3, so I targeted 20 pips away from the Daily Pivot. Here is the chart:  Click above to enlarge There was a piece of British news that came out that the market went nuts. There was an initial spike up, but it didn’t hit the target. Since all 10 of the positions were entered, I decided to take the opportunity to take a small loss. I didn’t know what the market was doing and whenever that is the case, I have found that it is best to just get out. This trade resulted in a -0.06% loss on the account. I am fine with this and as you can see, price then proceeded to drop and never come back to hit the target, so it was a good trade. After my last trade, I decided to scale my trade size way back. This is my first trade at the lower lot size. Here is the 30 minute chart:  Click above to enlarge All positions were entered on this trade. As you can see from the chart, the trade then proceeded to go against me. Again, I should have lightened the load since all 10 positions were triggered. Having all these positions in play, I exited early. As you can see, price ended up hitting the target…again! This was pretty frustrating because this has been happening a lot lately. I ended up losing -3.9% on this trade. I closed out the last trade at a loss because I was afraid that the trade will go sharply against me. Well, guess what? Price dropped back down, so I decided to put the trade on again. Here is the 5 minute chart:  Click above to enlarge What happened? I got nervous again and closed out the trade. This time here were 4 trades on the line. I ended up with a -17.3% loss on this trade. OK, this is just unacceptable. My P/L swings are too high and I am under too much stress during the trade. That has been leading to poor decisions and not being able to stay in the trade. From here on out, I will be taking much smaller positions and not risking so much on these stacked trades!! Two positions were entered on this trade and it started to go against me. I decided to exit early to prevent a big loss. Here is the 30 minute chart:  Click above to enlarge As you can see from the chart, as soon as I exited, price proceeded to hit the target. I exited because price got close to the previous resistance level. Again, maybe my trade size is too big and that is why I am getting too nervous. If I had been able to stay in the trade, it would have worked out and I would have made money. There is a pattern that I have noticed on these trades. When there is a strong resistance level and price breaks the resistance and goes back below the resistance, there is a good chance that it will head lower, in this case back to the Weekly Pivot. Click here to continue reading May 12, 2010 GBPCHF Accelerator Trade >> Whew, this was a tough one. The week started out like any other and I was excited to put in my first Accelerator Trade. I put in the usual lot sizes and the market started to move in my direction and quickly entered all 10 of my trades.  Click above to enlarge It retraced a little and I figured no big deal, I’ll just wait it out like I usually do. The only trouble is that usually, I’m not watching the charts so closely. The market made a very small correction and while I was watching my live P/L, I got really nervous. I know that this trade needs some room to breathe, but it got to the point where I couldn’t handle the pain. Ever since I have started putting more significant money into my account, it has made me more and more cautious. Back when I had a tiny account, I guess I didn’t think that it would matter too much. Whatever the case may be, watching these trades does not help me at all. So what can I do? Click here to continue reading May 10, 2010 GBPCHF Accelerator Trade >> Here is one I don’t do to often, but this was a good setup, so I decided to take it. In the Bossilator Trade, we are looking for the Bossilator Indicator at the bottom of the screen to turn green (good setup) or red (even better setup) because price has been away from the 800 simple moving average (white moving average) for longer than is statistically normal. In that case, we want to trade back to the 800 SMA.  Click above to enlarge I also like to look for a support/resistance level in the opposite direction because that gives me an opportunity to get in “cheap” and manage the risk by setting a stop loss below/above the support/resistance level. In this case, there was a pretty strong support level. So I went bargain hunting and bought one lot near the lows of that range. My target was just before the previous high, giving me a good risk/reward ratio. My plan was to stack up to four positions if price went up, but if price went down, I would just let my stop loss be hit on the one position. Price broke the level and hit my stop loss for a -0.6% loss. That is the good thing about bargain hunting these Bossilator Trades. I can get in cheap and take a tiny loss. If I was able to stack my full four positions, then I would have probably had a gain of 2-3%. I will take that risk/reward ratio any day. |
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Forex trading is a high risk endeavor and may not be suitable for |
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