Forex Trade Summary (11 June 14)

Haven't been able to catch the early trades due to work commitments. Today's only trade is riding on a strong bearish sentiment on the EUR/JPY pairing. JPY is regaining it's strength and seems to be doing so for the next few months. 

Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.

Trade: Short on downtrend pullback. Take profit at 19.3 pips.

Review: Both short and long term trends were down, same thing  for USD/JPY pairing. This means the bullish sentiment for JPY is still very strong. Trade was initiated by limit order that was placed along downtrend line and caught a peak before continuing downwards. Quick and relatively large profit of 19.3. Good trade.

Trade: Buy at uptrend pullback after confirmation of continuation. Averaged down on same bar. Quick exit after 3 bars at average of 9 pips profit.

Review: After confirmation of upward continuation (kicker bar touching trendline), I waited to see if price would come down for a better position to buy. That decision was rewarded by a mini pullback followed by a big green bar to solidify profits. Confidence of taking long position was strengthened by medium term long trend on the 1 hr chart.

Summary

Both trades today were in-sync with the longer term trends shown on the 1hr charts. This gave me more confidence to take my trades and wait out for a profit, although the trades today were quite swift. This also makes a difference in the confidence to average up/down for a better overall position.

Forex Trade Summary (6 June 14)

Due to work commitments, I haven't been able to trade actively for the past 2 days. But I still managed to catch this short term trend reversal on the EUR/USD on Friday.
Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.

Trade: Trend reversal from down to up, higher peak and higher trough. Buy after confirmation of upward signal. Averaged down on next bar. Profit taken at average of 7.5 pips.

Review: After a gradual downward movement on the 5min chart, trend reversal is signalled by higher peak. Took position after a 3 bar upward confirmation.  First position was a little high, thus averaged down on the next bar. Quick exit within 5 bars at previous symmetrical resistance, in case it turns into a sideway movement.

Forex Trade Example (3 June 14)

Like I said earlier, this blog is not a trade advice or even a trade education course. It was set up to record my own trades and to share my own trading methods with other trading enthusiasts who wants to find the best method for themselves. In testing out my methods over the long term, I encounter some difficulties in coping with market volatility and my own psychology. These problems are what many retail traders face all the time. Only if we curb them, can our trades have higher probability of winning. The second trade today shows how trading psychology can be your greatest pitfall.

Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.

Trade: Set order to buy at trough, sold at 12 pips profit after exceeding previous peak.

Review: Short term downtrend ended, long term uptrend resumed by higher peaks and higher troughs. Position taking was a little hasty, but due to the long consolidation phase within the hourly uptrend, prices are likely to spike rapidly, order is set to buy in a more favourable price.

Trade: Buy on uptrend pullback. Got caught on a bigger pullback, but did not break previous support. Closed position at breakeven point, in case it is a longer consolidation phase.

Review: Long term trend observation is correct. But was too hasty on taking position. Could have waited until upward signal was present at 2015hrs before taking position since previous trough was not broken yet.

Trade: Sell when previous trough is broken, confirming start of downtrend. Quick profit taken at 5 pips.

Review: This is a break out trade. Since downtrend is confirmed, and downward movement is usually faster and shorter, short position is take quickly and averaged up on the next bar. Profit taking is also done quickly before a strong drop is followed by a strong pullback.

Summary

Trades 1 and 2 today were too hasty to take position. As a result, the position taken was either unfavourable or not confident. Make sure directional signs are in place before taking a position. The third trade was a quick breakout. An unusual trade for me, but seeing the opportunity of a downward break, I quickly shorted at break trough to take a quick profit. Trades can come in different forms, as long as you are confident to hold out for the time and profit target set out, it will be a good trade.