Forex Blog: Currency Trading

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Tonight could be a long night!

It’s 19.51 here in the UK.

For those starting out in forex, I recommend trading only the UK business hours 9-5, but as you probably know if you know even a little about forex, this is a 24/5 market that operates with no central exchange, and round the clock.

I saw an opportunity to SELL the USD/JPY after the close of the UK session. With a tight stop a few pips above the wick of the long candle I went short at 123.47 and have already locked in 10 pips profit on the trade. There is middle line bollinger band resistance and the candlestick pattern does not particularly favor the short, but I’m going for an extremely ambitious overnight target of 122.90 the previous low.

The other reason for this unusual entry was a quite overheated RSI on the 5 minute chart (not a part of my trading strategy - I normally enter from 1 hour, 4 hourly, Daily going down to 15 minutes chart as the shortest term time frame. I use 5 and 15 minute chart for confirmation with my other strategies that you will learn as a member of http://www.fasttrackforex.com/members only…

With the comment from Japan that the JPY should not be shorted and the end of session bullish candle which contradicts the statement (ie the statement was that investors should not sell the yen), this was a speculative trade (hey its a high risk, high return market, huh) - as one of my financial coaches, Stephen Sutherland said “if you want to get rich with bank accounts, the seminar is next door!”

Remember I am not giving recommendations here.

Forex is a high risk investment vehicle, especially if you don’t know what your doing and like many other investments you could lose everything you invest.

This is one of the joys of being able to take 10 pips out of the market at any time any place.

With the ten pips locked in, my highly ambitious target of 122.90 could be just the start of the trade.

A target of 10 or 8 or 6 pips even (preferably in the reverse order of the above) each day will make you FREE. Why? Well, think of what you average working class wage owner earns in a day, something around $60-100 right? Outside of US and Europe, probably considerably less (eg some parts rural China - $1 US).

Now imagine you have a bit of time and experience under your belt. You can get your 6-10 pips NO HASSLES each day. Up the deposit a bit (and the leverage) - now you’re trading $50-100 per pip, then $150-200 then $3-500 per pip and THEN may be you’ll realise why I’m telling you to take profits at 2,3,4,5 pips when the market isn’t going some your way. Trade smart and simple.

Cable broke the 2.000 barrier again today. I will be subscribing to the tipsters and seeing what they have to say about this and will post my findings and ideas when I’m done with that. For now, my trade is rolling and I will be moving up remaining stops to a 15 point trailing based on previous nights action on bearish candles and watching the market very carefully until I’m ready to retire for the night for manual trade closes just in case.

That’s all for right now,

Happy trading,

Sam

Update: 20:52

Hopes for 122.90 have been dashed and will be taking all profits at 1.2337 now as 10 pips target. Still a very exciting and “bonus” trade. The three bearish candles all contained in the first half of the bullish candle is a bullish continuation pattern. I’m still staying in the trade though, as we’ve also hit support and that could be the reason for the delay. It’s a guaranteed win trade now with profits taken at 10 pips and stop at 10 pips profit. My adjustable Take Profit is still 122.90. Such is forex…

Update: 21:27 GMT - I am very happy that the market has broken the support level at the end of the US session where we are now. If the Asian session goes on the JPY announcement and follows suit, I’m going to buy a crystal ball and start a Psychic Signals Service…we are bearish once more because the current cndle 1hrly is engulfing.

None of this makes me a genius, but it goes to show that if you listen to the forex market, as a retail forex trader, you can pick up the information you need to trade like a professional.