Back again for another trading journal blog post and I will continue where I left off. If you don’t know already I trade forex by indicators only. While some may think I am crazy others will praise my approach. In this industry, there is no one way to trade. You need good risk management, and I would start with this when it comes to learning to purchase an asset. Understand how to manage your risk, and you will be doing better than 70% of traders. 😎
Once you are a “risk” guru, start looking at the mindset of a trader. Some say you need a little emotion, others will state you need to trade like a robot. Personally, you need to be somewhere in between moving from each side of the spectrum. A good trader knows when to trade like an automated robot and when to use a little (not a lot) of emotion to manage their risk. My essential advice is to only let your feelings protect your money by closing a trade as soon as there is an indication that the price has gone the wrong way. An exit strategy/indicator is always good, stop losses are trading 101, but if you don’t know where or when your exit strategy comes into place to protect you then you will lose in the long run. 👏
I will create a separate blog post about how to place a stop loss. Now! Let us get over to the charts and have a look at how my trades are holding up. If you read the last blog post you will remember that I am already in two different trades.
The Australian dollar is holding steady against the US dollar with the price coming down to test the 52 day Ichimoku moving average. With the current close still above the MA, we can stay in this trade. What I also like is that we see more volume coming back into the market today for a push to close higher than yesterday. This is a good sign, where we should see some moment towards 0.73 again.
No complaint about this trade and to be honest, you will get these little runs which make you realise why you trade forex. You enter a position on a pair, and it just moves in your direction. Remember that you need to make sure you have a take profit target. TP or TPT, does not matter what they call it just make sure you scale out of your trades.
Hopefully, from the chart above you can see my current thoughts on the trade. My volume/volatility indicator is telling me are slowing down. The past two days we have been moving up with no real volume to support this trend. My trailing stop loss is not far behind which means I am expecting to see a slight retracement on the price. What goes up must come down, and this trade is no exception.
Last but not least, I have just placed a short on this pair. My reasons are simple, and I will clearly explain using the chart below.
- We have already bounced off the 52 day Ichimoku moving average.
- The direction has changed confirmed by our yellow crosses on the chart.
- The volume/volatility has increased on a bearish candle.
- The strength of the downtrend has been increasing in the last 3 trading days.
- The sentiment is nearly confirmed to have moved to the bearish side. (last indicator)
And that is all folks. Another day another forex trading journal. Check back tomorrow for an update on all my trades 👨🏾🏫 Remember you can follow me @
Go check out the Pineapple Chicken blog to understand why you should get away from the charts and experience the wonders of the world. Personally, I take the charts with me, and my girlfriend over still loves me for it 🤣
DISCLAIMER: I am not a professional trader and have a long way to go before I call myself a pro. This is not financial advice, and you should do your own research before trading or look at my positions. All trades are currently made in a demo account.