A stock investors kick at FOREX

BACKGROUND

During 10 years of stock and bond investing I managed to evolve my investor strategy for that market. I am a conservative investor that focusues on potential loss just as much as potential gain. Unlike the stock market which I buy and hold for months or years at a time sometimes never selling (I currently hold Bank of Nova Scotia stock for 6+ years with no intent on selling considering the dividend it pays) the forex market is a totally different market.
I plan to enter the forex market with a micro account with FXpro, but first I will expand my knowledge with a DEMO account with a starting balance of $1000 USD. After I gain enough confidence to put up some decent capital I plan on moving to a REAL account with a $1000 USD starting balance.

TRADING STYLE

Trend trading is what I will focus on, I'm not interested in trading breakouts or range-bound markets.
I will use the 4-Hour, 1-Hour and 15-Min chart. After confirming the trend on both the 4-Hour and 1-Hour chart I will use the 15-Min chart to enter the trade.

INDICATORS

I plan on using the SMA and RSI to assist me in entering a trade. I will also use support and resistence levels to assist my trades. The system is simple for the time being until I gain better understanding on how the market moves.

RISK MANAGEMENT

I will not risk more than 5% of my account at any given time. Which if my math is right will be .50 lot size for one trade. If i take a .50 position I can not open another trade until I exit the first one. I will not have more than 3 trades open at a time, and they must equal < .50.

TAKE PROFIT/STOP LOSS

I will use a 1:2 ratio. For every 100 pip loss I will gain 200 pips, in theory anyway. I will also employ a trailing stop-loss in case my take profit is not hit before the market turns against my favor. I have no set distance that I will let the stop-loss trail.

TRADING DESK

Here is a screenshot of my setup thus far. (No laughing, lol)



I will also use myFXbook to track my progress. Any feedback or questions would be greatly appreciated.

Thanks!

This is the start! I hope you follow along on this journey.
I forgot to mention I will only be trading AUD/USD AUD/JPY & USD/JPY considering the Sydney and Tokyo sessions are the ones I can be around my computer during.

Opened my first trade. Exciting! Long on USD/JPY @ 103.260
RSI was under 50.
Set my stop loss at 15 pips, my take profit is at 30 pips. I'll remove the take profit when i hit 10 pips. At which time ill set my trailing stop.

Hit my stop loss at 103.100. -16 pips.

Opened a SHORT position on AUD/JPY. Entry price 92.33

S/L at 15 pips, T/P at 20 pips

RSI below 50 on 15 min chart.

I do about 50% Forex (day trading), 50% speculative micro-cap stocks (swing trading). I started out with stocks but day trading is much more satisfying with forex.

I only use fundamentals when investing in stock. I don't think technicals apply to my style of investing considering I buy blue chip stocks that usually pay a dividend that has increased steadily over time. Forex to me does seem to be more enjoyable when it comes to trading.

What about AUDNZD and NZDJPY?! They are part of that session too, plus AUDNZD good carry if you like that style.

I'm not sure if I can manage that many pairs, but I'll keep it mind. Thanks!

Hit my T/P while I was away from my computer. +20 pips

Three trades open

SHORT USD/JPY @ 102.489
SHORT AUD/USD @ .89552

Not sure why I entered the third, strayed from my plan

SHORT EUR/JPY 142.691

Hope they work out!

Managed to exit the EUR/JPY trade with +1.8 pips. Stupid me.

POSSIBLE TRADING STRATEGY

Step 1. Open two orders one SHORT and one LONG. Both orders have the same entry point.
Alternative Step 1. Watch a currency pair and when the spread is equal to 0.0, enter both a LONG and SHORT position.

Step 2. Set a S/L for both positions equal to each other.

Step 3. Set a T/S trigger at half the amount of your S/L, have the T/S trail for half of the trigger amount.

Step 4. Let time take over.

I will test this and see what happens, unless someone has done something similar and has some insight.




OP