XTrade - Trade Journal & FX discussion

Hello all,

I don't know if some of you have heard the latest low blow against Retail FX Traders. This is direct result of the Dodd Frank bill, that has already changed the retail market in the US. (ie: no hedging, FIFO applies, no broker service outside the US, etc)

So, the blow is as follows,
After July 15th 2011 US brokers will liquidate all open "spot" XAU and XAG / USD positions and will no longer offer spot Gold and Silver trading.

They look at it as CFD trading which is illegal in the US.

Some of you may know me from my XAU/XAG /USD Gold & Silver FX traders thread, where I spend most of my time here at FF. The thread will be kept open for Gold discussion and I will now have to seek out a futures broker if I want to continue trading Gold. Futures and Spot gold do vary slightly in price and the margin requirements are FAR higher than paying the FX broker's spread and margin.

-----------------------------------------

In any case I figured during my search I figured I would try to add some focus to my currency trades and record them the best I can here in this thread.

Anyone is welcome discuss trading here as well as reasons why or why not we may take a trade. Please be constructive and treat others the way you would like to be treated. Please refrain from wild punts as well.

I will try my best to give fundamental and or technical reasons for my trades along with Entries, Limits and stops. Sometimes when I am screenwatching I do NOT use stops.

Hopefully, I can increase my trading skills we can all learn from eachother through spreading information.

--------------------------------------------------

Primary Pairs traded:
GBP/USD - EUR/USD - USD/CHF - AUD/USD - NZD/USD

Lesser traded:
USD/CAD - USD/JPY - GBP/JPY - AUD/NZD EUR/CHF
EUR/GBP (Hope to trade this one more often.

I just wanted to lay the groundwork with this post. I am in my third year of
Trading FX and the learning never stops.
Thanks for listening,
XTrade

ADD on:
I try to read as much news as possible depending on what pairs I am focusing on and like to run multiple trades at once usually with a bias against or for the USD.
I spread the trades between multiple pairs ie:
Long EUR/GBP/AUD/ USD and short USD/CHF in order to keep all my eggs from being in the same basket.

Other times I will trade a singular pair and furthermore, I have learned that it is not necessary to always be in the market, so I will remain flat at times instead of just rolling the dice. That's what casino's are for. I think newbies ( I know I did) feel that they must always be in a trade or they are going to "miss out" on that big trade. Well, there's always another one and the "market can remain irrational longer than you can remain solvent" so
(not to be cliche) but when in doubt stay out.

I will trade the NFP, Unemployment, FOMC meetings, etc. But I am not a religious news trader. I will make sure I look at the calendar every day so I don't get caught out there.

I trade based on fundamentals and technicals. Some say you need to be one or the other and I feel the complete opposite. To me there is nothing better than when the fundamentals line up with the techs and make for a great, powerfull trade.

I do not like overloading my chart with lagging indicators.

I do use some for perhaps a "push" if you will, when needed if I am looking for a bit of extra re-assurance, usually only when I attempting to enter a position trade. Where the entry is not "as" important as a scalp or intraday trade anyway so...

These are - Stochastics (Full) RSI, "the classics" I'll look at ATR for potential profits.

Mostly I will pay attention to price action, pivot points, prevailing trend using a channel with multiple lines to trade it - ( Midpoint - overshoot top and overshoot bottom) or prevailing range limits when the market moves sideways.

I usually will always have fractals and volume up. I use volume to help analyze where the money is coming in and going out but I do not know VSA but would like to learn more.

I do use moving averages frequently for entry, TP, stop etc.

Last and most important SUPPORT and RESISTANCE. In conjunction with moving averages, fractals and a channel is a pretty standard chart for me.

I also like to play chart patterns, ie: Symmetrical Triangles, Bullish/Bearish pennants and/or flags, head and shoulders, cup and handle. To name some favorites.


To sum it up.

Hit 8350 support after FOMC today and has subsequently risen appx 100 pips since the low.

I am going short now @ appx 8433 - May have the potential to hit 8450.
Yet the rise is beginning to look a bit tired.

Target is retest of 8350 area if not below.

Stop is tentative 8480 so appx 50 pips risk for appx 100 pips reward.
1:2.

I find this pair can be fussy to trade at times. If it starts to sit around and barely move I may close out.
I see potential resistances at 8450 and 8480.

I have the current top downtrend line intersecting the horizontal resistance at 8450. As well as the 100 sma on H1 which I primarily trade btw.
If she rockets through and sustains the line breach I will reconsider. See below

Also looking at AUD atm

Target hit today. My take 83 pips.
I have been riding shorts on this pair for quite some time. However now we are in uncharted territory and the price seems to be able to climb a few hundred pips up before diving back down further and creating a new all time low as it just has.

This pair does require some patience to trade. BUt can be very rewarding.

Now I will watch it for a bit.

Below is the trade outilne.. You can see soon after the entry there was a rush on it, then rejection

Have to get better at updating more religiously.

Lost money last night long EUR and AUD.

Recovered last night on LDN and today after dip trading EUR and Cable.

Should have stayed short Swissy, yet the pair bounces so much right now.

I don't want to bore or clog up the thread with useless scalps for 10 or 20 pips.

--------------------

At current long
FIBRE- (EUR/USD) again at 4280 (could have just stayed in trade but took profits twice today- 85 pips from last night at US open and 65 during US

Short swissy @ 8350 Target one = 8300 and breach on dip through into the 200s. Ultimately I would like to see a test of 8000.

AUD - long - target 5650 + / stop below 4000. watching this one closely though and will exit if I don't see the necessary bounce I am looking for.

Still in AUD and EUR -

Waiting on break of 1.4340 for Euro and would like to see price above 4354 pivot to test 4400.

AUD needs to take out 1.5000 - Gold still bobbing in a 10 USD range between
1501 and 1491.

Swissy short- set a TP for 8305 so just got taken out with 45 pips. the pip value is 11 on swissy and a whopping 16 on EUR/GBP

Swissy has broken support @ 8320 and I could see a potential push down
to 8250 area.

The Euro has hit the same areas twice....

Sometimes I'ts worth it to sit there and enter and re-enter.....

ie: Price hit 4320 and 4260 twice, thus could have doubled profits, these days I don't have the patience most of the time and prefer to let the trade run it's course.

AUD, EUR and GBP pushing higher now towards aforementioned levels.

Swissy going for the dive just re-entered - @ 8308 -
order set to snatch up pips around 8260. Pair has a tendency to snap back an entire move at times.

Let's see how it goes.

only appx 150 PIPS TO GO!!!!!!!

nEXT lt TARGET 7500