Journal Entry Friday 10-02-09 @ 8:30am CST:

After watching the AUD/JPY pair for the week, it is finally backed down to the support level of 76.557 on the daily chart and the level seems to be holding. On the hourly chart we have the 08:00am wick fell below the support but closed about the support level. The 09:00am candle once again tested the support level but closed about the level. This pair seems be moving in a range of 76.557 to 79.996 since August.

This pair has pulled back up on the daily chart so I am not going to take the trade today for a long term trade. Will watch it today and see where it closes on the daily chart. Sunday may be the day for this trade.

Side Note:
I did however take a scalp trade off this pull back for 50 pips on a 1k micro lot.

Any thoughts or input would be Appreciated

Thanks
Scott

Journal Entry Friday 10-02-09 @ 11:16am CST:

Next Week’s Plan:

Pairs looking at to trading next week:
AUD/USD – This pair is close to the up channel line if the channel line holds today I will be looking to go long at around 0.86286 with a stop just below the uptrend line.

AUD/JPY - If this pair moves back down to support I will look to go long at 76.649 with stop just below support line.

Pairs going to be watching for next set of trades:
AUD/CAD – (Carrie Trade) - This pair seems to be moving back down to the uptrend line I am going to watch this pair over the next several days to see if it continues down to the trend line.

NZD/USD – Also will be watching this pair as it is flirting with the uptrend line.

If anyone is interested I created a chart that helps me in deterring the pips I can risk with the 5% risk ratio. This is only for Mico Lots.

Any thoughts or input would be appreciated

Attached Files

PIP_Count.doc (192.5 KB, 46 views)

Welcome FXMICROMAN!!

Thank you for posting your Journal and Plan here. I like your plan for this week. It is simple and to the point (maybe a bit more details). Let us know how your plan went. I'd like to see the outcome as I am sure everyone else would like to see the outcome as well!

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~ FXCM Micro Specialist

Your calls were spot on fxmicroman! How long have you been trading?

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I opened my live account in January opened it with like 60 bucks to try and just learn. Went broke in it so I re-deposited and took about four months from real trading to just watch the market and read all the named for me books Currency trading for “dummies”, Technical Analysis for “dummies” lol… Just about anything I could on FX, took the power course once and now going back through it just for a refresher did a lot of on paper trading. Just started back to live trading again this September.

I did the practice account but found when you are trading with fake money you tend to take bigger risks and I did not learn anything with it. It’s like playing poker with play money you go all-in with 7c 2h lol… No emotions involved.


I think it was just a lucky call the real test will be the next two weeks to come. I plan on making my trading plan a lot more detailed just have been busy this week and have not got to do much with it I am trading as a hobby / after hours from my 8-5 would like to make it a full time job would be nice…. Lol…

You did the smart thing. Knowing the market will save you from any mistakes in the long run, like news coming out and ruining a position that you have open or something of that nature. I just started trading Forex in September, but I am coming from many years of futures and equities trading so it is not a huge leap for me. The difference is the news and the longer trends, which I think is awesome. I am also an avid poker player, love the game. I posted a link in my journal of the 11 reasons that poker players make good fx traders, lol! If you wanna check it out. I have never gone all in with a 7 2 nomatter what suit they were though, lol! With the currency market, I am sure you have read, risk management and money management are more important than your trading system. I am no expert by any means, but if you would like to share and discuss ideas I would be happy to. Trading equities and futures I always had a group to discuss ideas with and it made it more fun as well as educational; it also gave different perspectives that some people overlooked which is always a good thing.

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Journal Entry Tuesday 10-06-09 at 6:56pm CST:

Still watching the AUD/JPY pair It is still looks to be moving sideways(range) I am looking for it to move back up to the Daily resistance level @ 79.856.

As of today on the 4h and 2h chart we have a flag forming. If the pair breaks the 78.928 level I will be watching to what happens at the 78.734 fib level if we break the 38% level looking to shorting this pair at around 78.704. With this pair making higher lows and lower lows it looks like we are now going back down to the daily support at 76.327

But if this pair breaks above the 79.252 level could take a long position but I will probably wait to see if this pair moves on up to resistance then take the trade.



Any input?

Oh yes, I do not risk more than the 5% of account and try to only look at trading one to two pairs at a time and only look to enter when I feel I can make the 1:2 risk to reward I normal look for the 1:3. I only find them when I get into a break out.

I will go read it… Sounds interesting is it because we know when to fold them lol…

That sounds good to me, the more input the better the trade will likely be and also the more one can learn from others. I am always open to all and any input on trading.

Your chart just brought back a lot of information in my head. I remember the daylight MA setup now and waiting for proper order. Do you do that with all of your charts? That is cool, I like that strategy. I like your chart and it does show the probable drop to a bounce. I like to look at the lower timeframe when we get the fib touch. For example, if we look at the first fib touch around the 77.317 level, the 15 minute chart showed nice support. The next touch was after the interest rate hike, so I don't know if that counts, but also the 15 minute chart it was support that had been previous resistance.

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I apologize, I have the flu and have been posting without submitting the chart all night. I agree with your longer term resistance and like your strategy. I didn't draw in the upper resistance on my chart, but if I did it would be a zone of 79.126 and 79.233.

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I guess I just like to tell everyone that I meet about risk and money management. A lot of new traders would join my equity trading group and go all in on a penny stock and then wonder why they lost almost all their money. Reading for four months you must have learned a lot. I used to read as many books on trading as I could. I don't do it that often anymore, but there are times when I find a good book and go crazy for it. I am reading an updated version of Kathy Lien's currency trading book right now. I like her so far from her interviews so I decided to check out her book. So far it is just explaining fundamental stuff to look out for.

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You have not been around any pigs have you…. Lol…

I normal do most of my work on the daily, 4h, 2h and 1h to decide my entry points. unless it is the first of the week or the month then I will look at the those as well...

Only when I am ready to enter the trade will I move down to the lower scaled charts like the 30 and 15 min then I look at the 10, 20 and 30 EMA to make sure the trade is really moving in my direction. I watch the 10 EMA the yellow line when it moves down to be the first line as it is doing now I would wait until the price moves back up to it before going short. Or if I was going long I would do the same thing.

Yes I normal try to find out anything I could on the charts some days my charts have so much on them you could not even trade from it have to open a new one lol…

From the looks of the pair as of now on the 1h chart it maybe rolling over to the down side so tomorrow morning may be the day to watch for sure.

I have read watched and looked at so much FX stuff I was having dreams about charts and trading lol.

But yes I knew I had to do something about risk management after losing the 60 and only making a .50 to a 1.00 on one trade and losing 4 to 5 when it turned the wrong way I was doing something wrong lol…

Let’s just say I have been there and done that…

I am currently reading Technical Analysis by Jack D. Schwager its ok some good basics
I am looking for a good book on the Elliot wave that sounds interesting.

I did get pulled over yesterday for speeding, lol! A pig becomes a hog at 180 pounds and therefore has a greater chance to transfer the swine flu. J/K, I haven't been pulled over in quite some time thankfully.

I do about the same. I look at weekly to determine the possible range for the week and then go to a lower timeframe. I use the daily, 4 hour, 2 hour, one hour for trend, and then the 15 minute and 5 minute to help me gauge price action to give me insight on the larger timeframe.
Here is a link to my journal if you want to check it out
Iceoverflow - Journal and Plan

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