Eur/USD

Hi all,

I am new to forex trading, and I am currently in freshman year of college of the school of pipsology. I find it helpful to apply the techniques I am learning as I learn them. So, I was doing this on the practice demo for OANDA, and I thought I had a pretty sure thing with Eur/USD. I shorted Eur/USD at 1.13971 at 21:34 yesterday. I was confident enough that it would go down that I took off a stop as the price went against me. The account is a 100,000 practice account, and I had leveraged it to sell 1.6m Euros. Before I went to bed, I had an unrealized loss of around 5k. When I woke up this morning, I had a profit of around 1,500 and I put a trailing stop on to ensure a profit which closed to give me a profit of 736.

My concern is how do I spot these kind of mild(I believe the word is consolidation apologies if I am wrong)consolidations before I make a trade. When I go to actively trade I won’t have the benefit of a 100k account it will very likely at most be 1k, so I need to be able to get on a string of profitable trades to increase the value of my account. If someone could walk through the analysis of what I should have seen, I would really appreciate it.

Hi mr. J,
Thank you for your story. If I’m understanding it right, you would like to know how to get 100% profit instead of less than 100%, am I correct? If yes, then my answer is, there is no guarantee but in this case I would keep checking all signals for confluence and depending on a higher amount of good signals rather than bad. I would continue with stop trailing and otherwise close the trade in profit. By confluence of signals I mean, if you get more confirmations that it is gonna be a continuation: how can you confirm if there is a continuation? Good question, you can see this is there is no doji candle. Usually the volume is high (check the volume indicator). Also check the bolinger band in 5m/30m/1H chart whether PA (price action) doesn’t touch the wrong band. Also, if your currency pair, for example eur/usd then the 10/20 moving average is very likely to move with PA and when it touches or 10MA crosses 20MA then you will know to close your trade cause it’ll go the other direction but as I said, this relates to eur/usd. There are actually many things to consider, like formation, candlestick pattern and double top/bottom as well as double fib confirmation and you should always use ATR, without it I advice not to trade. If you don’t understand, or if you would like to trade with me, you can always add me on skype. My skype is: michaellobry.
Kind regards,
Michael Lobry

Hi there! Thanks for sharing your recent forex trading experience. Well, let me just remind you that there are no “sure things” in the forex market, but more of just highly profitable setups. If you’re able to consistently spot and profit from those, then you should be able to increase the value of your account. Apart from that, you could also make sure that your winners are bigger than your losers so you’d still end up positive even if you’re right less than 50% of the time.