Monday, November 17, 2008

Patiently waiting for opportunity

First entry was for testing morning high. It didn't test it and I decided to get out because all of that got prolonged and 14:30 got close and I didn't want to have open trade at that time of wider spread in fast gbp/usd. At the time it also looked like the price will be around my entry and stop, not higher in profit as it later actually was.
Second trade was pure momentum driven. I decided to exit at that moment because all pairs started to fall against jpy at that time and there was no up pressure in eur/usd like in gbp. It's not very good environment to stay long gbp. So I took scalp.
I would be more happy if I took scalp profit in my first trade when I had it. Best value entry for that gbp/usd retracement would be 900 area. Price wasn't for very long below it, so it showed nice support tendencies.
Trades were half size, so +10 full size pips.


10 comments:

ORION MACHINE said...

good job buddy!

FX said...

ty, I'm satisfied with the trades

StockHunter said...

*Thumbs up* Nice job!

FX said...

:D

StockHunter said...

I am wondering if I could please get your trading srategy from you? My current one for forex isn't quite working out, so I'm looking for something new to test (paper-trade). It's understandable if you don't want to give me it, so if you don't could you point me in a good direction?

Thanks in advance! :)

FX said...

I don't mind sharing anything, only problem is that my trading is discretionary and everyday it's different. You can say that I don't have a strategy. I mostly trade by sitting in front of screen and just watch what is going on. I've done it for a long time so it's easy for me now to get some clues that interest me. I like to trade eur/usd and gbp/usd mostly, eur/usd especially because of the smallest spread. For me the key is understanding what is going on, where market participants are driving the price. I than usually scalp because it just suits my personality, but there are lot's of other opportunities. Like today, there was strong up move in gbp/usd and I was looking for a trade that will give me test of high after some consolidation. Usually if the high or low is penetrated there is more trading opportunity because it will move more.

There are some directions that I would like to point. Forex is pretty much trendy intraday. So if there is no movement best is just to wait. See what is range and just take signal when that range is broken on one side or another. If on another hand there is trend it can easily be seen on 1min and 5min charts. The best course of action is to enter in direction of the trend. When there is big trend there are always reactions, and when that small reactions give in to trend it's time for it to resume. So there are plenty of nice entry points. Also important thing about forex are news. So depending what is news, good or bad, market takes direction. I use http://www.forexfactory.com/calendar.php for calendar of news events. There are important news times every day, so you got to know is there a news near not to get caught in spike or wider spread. There is good software, free, with back data called metatrader, google for it. Some brokers use it as their platform and you can download it and have a demo. In it you can easily see how market tends to accelerate and make big moves when some chart formation or levels are penetrated.

So first I recommend that you download metatrader and play a little with it. It's the best way to notice various tendencies of fx pairs. You will see how does trend on 1min and 5min looks, and how it is persistent. You will see how market accelerate after broken level.

If you have any other question or you are interested in something with more detail just ask.

If you are looking for clear strategy, orion have one that works great for him.

StockHunter said...

Awsome! Going to take a bit to absorb it all, but thanks alot!

Your recomending metatrader for looking back in time correct? If so, then I'll prob use my software because I get forex data feed with my stock data feed, and it has a rewinding feature :).

Thanks again!

FX said...

Great. Maybe your software is even better. Only I would recommend to at least check metatrader. There are lot's of custom made indicators for it over on various forex forums. I'm not so much in indicators, so don't use that much.

StockHunter said...

Ok, is it http://www.metatrader.net? It seems to not be working for me :(.

FX said...

Yes, that's it. If you don't like it no problem. I just wanted you to have overview how fx pairs move over different time frames. Than you can develop idea what t/f is best for you and how to approach it.