BACK in FOREX as of Sept, 7th 2008. I had best returns ever in 2007. The start of this Journal and 2008 were a little more harrowing, as i struggled with a couple ill timed trades that put me behind the 8-ball and forced me to spend the beginning of the year fighting back to break even. I ended up getting within a few hundred dollars of my principle investment and called it quits. I entered the equity markets and have had some good fortune there playing alternative energy, and remain long only one canadian equity.
I am returning to Forex, because it's a viable market for me to make some money. I noticed that my Forex experiences really helped my equity, and I can only hope this foray into Forex puts some more money in my pocket. Someting about the Fall and forex, it works for me.
(OLD TEXT BELOW< WILL REVIEW AND UPDATE LATER.)
How I Trade
Most trades are based off technical indicators. I have recently grown a bit more discipline that allows me to wait for what I see to be the ideal entry point. In the past I might in haste just pick an entry accepting it might go down some, but ultimately ladder in with additional lots to make a succesful trade. That strategy however expioses me too much to the possibility of getting caught on the wrong side of a long term trend that, not matter how much laddering in results in massive losses (without endless capital). So, the idea is to wait for the key entry, where I would rather be behind a move and catch it not long after it has begun, versus trying to predict when the move will happen.
Fundamentals play a key role for me, I can not get behind a pair where there is clear disadvantage either in known economic situations or perhaps news pending of negative economic change.
Occassionally if I am having a strong day or feeling like taking additional risk, I will throw a trade out on a whim, but that is not a good habit. The last time I did that it cost me 30% of my account, which I recently have gained back, only through tedious and well timed trades. However, once I get into the black substantially, I may wager moer than 1-2% on a position and load up.
I am not a big user of stop losses but I used them sometimes; my positions are small enough, where I can whether most adversity excluding huge moves. I do maintain mental stops for the worst case scenerio, however. I may add to a winning position and raise Stop Limit if I am on the right side of a major trend, however those have been few and far between in this frothy market as of late.
Indicators I Use
Bollinger Bands, primarily for the 20 SMA (center bollinger) and sometimes as an indicator of potential moves - when the BB bands tighten there is higher probability that something is about to happen. Which way it goes is not offerd with BB, just that something will happen. The center is a often a good bounce or resistance indicator on trending pairs.
Stocastics and Williams is all else I really use for picking my entries.
I recently started watching COT and other economic type indicators like bond yields and relative equity market valuations for over all currency strength, however, sometimes too much information can be misleading.
When and Why I Trade
I am still learning when to trade. I try to pace myself and be sure to take days off between trading days.
I trade to earn additional income, and as a fan of economics and monetary policy. I used to trade equities for years, but stopped when I realized that the kind of equities I like to own are speculative and better left to sit and wait long term. I'll be damned to sit there and trade equities that move up on bad news and down on good news - meaning there is no meaning to madness. Part of me is worried that the same problem may rise up in FOREX after currency derivatives start to taint the spot markets with arbitrage like strategies from big banks.
My Goals for 2008
I made over 300% in 2007 in just a couple months of trading. I could have made more, but I upped my risk near the end of the year and gave back some profit - after pulling out te majority of my winnings, I left myself with too little capital and got cleaned out on a puny position that should have been manageable. I was long USDCAD at .94...it dropped to .90 for a day and that's was all it took...sadly it rocked up over 1000pips a few days later. But I digress....
My goals for 2008 are to be better than 2007, grow as a trader by employing a more discuplined style on my entries and in maintenance of open positions. Perhaps finally develop a successful system for trailing stops - no luck yet - and maybe even start to integrate options into longer term currency positions.
I am returning to Forex, because it's a viable market for me to make some money. I noticed that my Forex experiences really helped my equity, and I can only hope this foray into Forex puts some more money in my pocket. Someting about the Fall and forex, it works for me.
(OLD TEXT BELOW< WILL REVIEW AND UPDATE LATER.)
How I Trade
Most trades are based off technical indicators. I have recently grown a bit more discipline that allows me to wait for what I see to be the ideal entry point. In the past I might in haste just pick an entry accepting it might go down some, but ultimately ladder in with additional lots to make a succesful trade. That strategy however expioses me too much to the possibility of getting caught on the wrong side of a long term trend that, not matter how much laddering in results in massive losses (without endless capital). So, the idea is to wait for the key entry, where I would rather be behind a move and catch it not long after it has begun, versus trying to predict when the move will happen.
Fundamentals play a key role for me, I can not get behind a pair where there is clear disadvantage either in known economic situations or perhaps news pending of negative economic change.
Occassionally if I am having a strong day or feeling like taking additional risk, I will throw a trade out on a whim, but that is not a good habit. The last time I did that it cost me 30% of my account, which I recently have gained back, only through tedious and well timed trades. However, once I get into the black substantially, I may wager moer than 1-2% on a position and load up.
I am not a big user of stop losses but I used them sometimes; my positions are small enough, where I can whether most adversity excluding huge moves. I do maintain mental stops for the worst case scenerio, however. I may add to a winning position and raise Stop Limit if I am on the right side of a major trend, however those have been few and far between in this frothy market as of late.
Indicators I Use
Bollinger Bands, primarily for the 20 SMA (center bollinger) and sometimes as an indicator of potential moves - when the BB bands tighten there is higher probability that something is about to happen. Which way it goes is not offerd with BB, just that something will happen. The center is a often a good bounce or resistance indicator on trending pairs.
Stocastics and Williams is all else I really use for picking my entries.
I recently started watching COT and other economic type indicators like bond yields and relative equity market valuations for over all currency strength, however, sometimes too much information can be misleading.
When and Why I Trade
I am still learning when to trade. I try to pace myself and be sure to take days off between trading days.
I trade to earn additional income, and as a fan of economics and monetary policy. I used to trade equities for years, but stopped when I realized that the kind of equities I like to own are speculative and better left to sit and wait long term. I'll be damned to sit there and trade equities that move up on bad news and down on good news - meaning there is no meaning to madness. Part of me is worried that the same problem may rise up in FOREX after currency derivatives start to taint the spot markets with arbitrage like strategies from big banks.
My Goals for 2008
I made over 300% in 2007 in just a couple months of trading. I could have made more, but I upped my risk near the end of the year and gave back some profit - after pulling out te majority of my winnings, I left myself with too little capital and got cleaned out on a puny position that should have been manageable. I was long USDCAD at .94...it dropped to .90 for a day and that's was all it took...sadly it rocked up over 1000pips a few days later. But I digress....
My goals for 2008 are to be better than 2007, grow as a trader by employing a more discuplined style on my entries and in maintenance of open positions. Perhaps finally develop a successful system for trailing stops - no luck yet - and maybe even start to integrate options into longer term currency positions.
