Forex: Wednesday, April 14

Work's been so busy today I haven't even had time to check the markets.

Anyone got a trade open, or looking to open?

The market's are dead slow right now, I've got to block off some free time during peak hours - when the different areas (EUR, US, JP) overlap open hours.

I was watching for some double tops and bottoms this morning - I set up a second screen at work so I can view the markets while doing taxes - but today's just been nuts with people comming in and calling.

The Master Swing Trader is one of the best technical analysis books I've read. I've probably 30 to 35 investment related books and this is one of my favorite's so far.

To help me gain greater understanding of the concepts I'm going to write a review of each chapter and post it here, if you guys can read the reviews and post some critique or ask questions I'd appreciate the help.

Shinken have you opened a trade today? I'm still flat, I haven't had anything come off the screen and grab me so I've just been concentrating on my bread and butter accounting.

USD/CHF has formed a 30 minute inside bar - I'm looking for the bar to break up - to much support below to risk a short.

If things work out I'll enter @ 1.3002 with a take profit @ 1.3048 and a stop loss @ 1.2959.

I'll also look at an exhaution (triple bottom) trade if the price bounces off 1.2976, stop loss and take profit points the same.

Long USD/CHF @ 1.2981; Stop Loss 1.2959; Take Profit @ 1.3048

The market finally started moving, I've raised my trailing stop to just under this move's low - 1.2964.

Now wait to see how the move goes.

The next area of serious resistance will be 15:30's high of 1.3000. If that breaks I'll raise my trailing stop to breakeven @ 1.2981.

I was wrong about the next resistance level - 1.2994 has stopped 4 5 minute bars cold. If it breaks it'll be a great support level to put a stop loss under.

Stop loss moved up @ 1.2974

Stop loss moved up @ 1.2982 - 2 pips under support, 1 pip above break even.

I'm waiting for 1.3000 to break and a base to form, then I'll raise my stop loss again.

Strong resistance, then support @ 1.2992.

The move has taken longer than I thought it would, so I moved my trailing stop to a few pips under 1.2992 - 1.2988. At this level I'll make 7 pips profit and have a good nights sleep.

If we don't bust 1.3000 this move I think the market will retrace and I don't want to stay with this trade if it doesn't continue up - I don't want to retrace through two support areas.

Karl, as to:

"To help me gain greater understanding of the concepts I'm going to write a review of each chapter and post it here, if you guys can read the reviews and post some critique or ask questions I'd appreciate the help."

No problem would love to participate.In fact I will post the like for any new book I find. It should be an informative, growing discussion.

As to yesterday, I didn't open anything. It was actually our day to elect a new president (sure ;-). I took a break from the market and on top of that couldn't get into this site; some kind of J Run server error.

I am going in now; it is like plugging into the Matrix, a mental fix:-)

It looks like your trading is far more fluid these days although I would lose the t/ps unless you are not at the screen. Unless you can consistently call the market within 5 pips you are limiting your profit potential.  I am the first to propose an exit strategy but I am far more lenient on the way up than the way down; ie I would let profits run until I lost focus/confidence in the position. With losses I am brutal. I traded with t/ps and the market overshot them by at least 30 pips on 3 occasions. I took a tidy profit but could have taken more.lol. I also lost a great deal in the beginning because I held onto a loss far too long.

 

I see your point about the take profit function, but my internet connection has been dropping so I like to have a back up. As well, I'm working while trading and most of the day I'm talking to customers or doing data entry - the t/p is a nice fall back right now.

My trailing stop was hit @ 1.2988 for a 7 pip profit, of course after the market tanked in the evening it took off and is near my origional forcast over night.

I can't wait until the tax season is done and I can concentrate on the trading.

Don't you find that the trading is like a bug. It bites you and you come down with this constant need for your vaccination. Actually, I suppose a drug would be a better analogy. I find myself speding more time on this than I do on most other things.

I am currently long USD/CAD and have already racked up 47 pips. Not bad, I am looking for 52 but anything in that ballpark is fine. i don't see going short USD as an option for at least a few weeks. It is still riding the wave of promise and what with intimation of impending rate hikes it doesn't seem the wise choice. 

"I suppose a drug would be a better analogy"

Very much so.

I've set a goal for myself to become a profitable trader - I'm going to work to achieve 3 consecutive profitable months with very little money at risk, then I'm going to put 10K USD in my account and trade for a living.

You read my mind:-)

The only problem is finding a means to sustain yourself so that you don't have to dig into your account. I have a business to run and no-one ready to take control.

But, come May 1 if my account is profitable in goes the cash. So far all looks good.