Hi all, hope you all had a great weekend! Well I was really looking forward to this trading week, with a decent end to last week, the optimism was high for a good week. Monday proved to be a test of my patience, my win/loss ratio was not that good, but with an excellent trade on the opening of Frankfurt and a late trade in the US session, another day of positive pips was to be had. First things first, here are my trade results:

Now some of you have noticed that I have a different icon in Marketiva, i.e. my little man has a blue tie on (I would have liked some poka dots on it ;)) and have wondered what this is all about. The staff of Marketiva have added a new status apart from Support and Assistant, that being "Commentator", with anyone nominated as a commentator by Marketiva having a blue tie. So there you go that is what that is all about, I will do my best to "commentate" as best I can ;)

Today I am going to introduce a new feature of my daily results, where I will screenshot and describe my best trade of the day. I see many beginners in the chat rooms craving for someone to run them through a trade, so this is the best I can do with my limited time before bub arrives :) Hopefully there will always be a "best trade" to do!

Trade of the Day

Above is the USD/CHF on the 15M charts, you may want to open the above picture in a new window (click on it to make it larger) as I run through what my thoughts were. This trade was based on what I perceived to be some indicision in the market. You can see, that before my entry there was a slight down move followed by some doji candles (see my theory article on candlesticks for an explanation on those) which was telling me that there was some indicision as to whether this down move was a good thing. My entry came just after that, when a dominating bear candle showed that the down move is accepted. Now in hindsight, perhaps waiting for a retracement (highlighted in yellow) would have been a better entry, but the prices had been hovering around Friday's high's all day which made me think the drop may have been a fast and drastic one. The retracement though added some confidence to me holding onto this trade as it made a lower high, indicating a move down once again was on the cards.

You can see, after the retracement, the move went in my favour, making a strong move down. I followed this with a trailing stop, which is just when you move your stop loss a certain amount behind the current price, it is a popular, and useful way to try to ride a strong move. In purple you can see my exit area, and a lot of you might be wondering why I didn't exit earlier, but this was intended to be a 10 pip trade, so I was willing to risk a movement up to see if the purple area was just another retracement. As it turned out it wasn't but I was happy with +18 on the trade.

Overall, I can't say I was totally happy with my trading day, especially the two -20 odd trades, which is more than I like to take as a loss, as I usually only aim for a 10-30 pip gain on a trade. Monday's are always a little quieter than most, and today was no different, expect a increase in volatility today and tomorrow.

Happy trading!

Today's result: +12 pips | Overall: -8 pips

This entry was posted on Monday, September 26, 2005 at 11:54:00 PM. You can skip to the end and leave a response.