Hi,
Last year I blew out an account so that I could not trade anymore, a small account. Utterly frustrating, took time off to practice on a demo started trading again the last two weeks, saw some success every month because I did trade every trade, I pretty much decided to trade on big news days in the stock market. Like when I heard bank earnings were going to report before the March 9 accounting rule change, now I look forward to banks to report.
I read this blog for analysts ideas, a couple free stock commentaries and I also have the book Stocktraders Almanac, which of course doesn’t have anything to do with forex trading but I’m going to keep some good notes in there. Like writing down my starting balance for the week.
So my starting balance is $1077.44. My account went as low as $940 last week before I decided I needed to keep it simple and to keep it to two pairs for trading, GBP/JPY and EUR/USD one time frame since I use free charts and I have to redo them every time I reload the trading software.
So this week I start with $1112.30 a net gain of $37.30
with 101 trades. $62.55 in commissions have been paid out.
Use the Hourly charts and 15 minute charts, 13 and 34 emas, 20 sma if you use Bollinger bands. Look at your charts about three to four times a day to see if there is any change to the slope of the averages, they went almost straight up for about 900 pips last week.
As long as the moving averages are pointing up, do not ever sell against the moving averages unless its at the top of the Bollinger band and there are significantly small downside candles or bars developing, then rebuy at the the moving averages that will be more less in the middle of the Bollinger Bands. Anytime the Averages are tested buy and put a 30 pip stop, below the nearest .50 or .00 indicator on that will not hurt your account. Make an open order at the moving averages and look for a breakout approximately 125 pips away before midnight and close out around 0630 if you looking to get out cause this last week the pinnacle of trading on the low or high side occurred at this time.
My goals this week are to reduce my # of trades and to enter as close as possible to the moving average cross overs or to buy one trade at support and hold on as long the moving averages are pointing in the direction of the trade.
Clear as mud? Good lets do this thing and make some money.