Well i didn’t make it to 2000 pips, but still my best month ever trading forex. If you had traded $10 a pip following my strategies you would have earned $18.000+ in a month !!
The pleasing thing for me was twofold.
1) The profit was made using low risk, repeatable trades.
2) That I didn’t get carried away and take silly risks to get to a target, that lets face it, is irrelevant. I have had individual weeks when I have earned more, then got over confident and lost a lot the following week.
The other great thing is that I have managed to be so successful using a very simple, low risk, basic system of break outs and pull-backs.
If you are new to the blog and updates, please read through my posts in April. I explain and show examples of different types of strategies that I have used. If you are new to forex, check out the free lessons on the main site
http://forex-fxtrader.com/Free-forex-training.html
My normal trading strategy is based around the 4 hour charts, but due to the choppy state of the currency markets in April, my system has rarely worked. In January, February and early March it was the 4 hour system that was earning all the pips.
All systems go through periods when they are “hot”. For this reason it is important to have flexibility in your trading to be able to profit through the different phases of the market.
I keep getting private messages on twitter and emails asking me where I think a particular currency is going next. The truth is ? I have no idea ! All I am trying to do is teach you all to look for “clues”. For example in Fridays email I said that i thought that the gbp was heading to 1.50 area again. I had lots of clues to suggest that it would, but it didn’t.
The following charts show how I was 1st alerted to Thursdays gbp long trade, by the break of the 4 hour channel. I then went to the 1 hour chart for a confirmed candle break. Finally I went to the 15 minute chart for entry.
Price through the channel on the 4 hour. Then I went to 1 hour chart
I entered at the arrow, having checked on the 15 minute chart
Blue is 4 hour trend line. Yellow asian high. 1st arrow, candle only pierced lines, 2nd arrow (E), price CLOSED above both lines. I entered long
This was a trade that could have been entered for any number of reasons. The fact that there were signs on all 3 different time frames made this trade a no-brainer.
I made 20 pips on the 1st lot as per my normal plan. On the 2nd lot I was planning/hoping for price to go to 1.500. It stalled at 1.4948. I changed my plan and i closed out for +60 pips on the 2nd lot at 1.4935.
I also made 25 pips on 1st lot euro buy at the same time- break of asian high again. 2nd lot closed me out at entry for 0 pips. So thursday lunchtime + 105 pips for the day and +1894 for the month. Then it went a bit wrong. (My wife has a theory that if I have earned 100 pips in a day I should turn the computer off. I am beginning to think she is right):
I was so sure that price was going to 1.500 that i was waiting for it to pullback to the 1.4850 trend line, as I mentioned in my morning email. The problem we all have is when does a pullback become a reversal. I bought 1 lot at 1.4848 and later a 2nd at 1.4820. The 1st lot missed its primary, 20 pip target by 2 pips and i was later taken out – 30 pips. The 2nd lot lost another 28 pips.
Net result for the day + 47 pips
Grand Total for the month……………… + 1836 pips
I didn’t trade Friday as my kids were off school for the day. If you had followed the asian break out strategy, there was another good move on cable and a lesser one on the euro. Hopefully some of you caught it.
The secret in forex is to pre-plan what you are going to do,
“If it breaks through this point and goes up I will buy here.”
” If it pulls back to this area I will look for clues (emas/candles/indicators) that it is going to bounce back up:”
“If it breaks down through this area I will look for reasons to short.”
You can be convinced that price is going in a direction and it goes completely the other way. HAVE A PLAN.
PLAN THE TRADE: TRADE THE PLAN
Monday is a world wide holiday, so I will not be trading. Normally holidays like this, when most of the big boys are away from their trading desks, result in sideways movement.
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