Like the title of this blog suggests, making pips in the Forex is easier said than done. This "reality blog" will allow you to follow my life as a Forex trader. I'll not only discuss trades, but also my emotions during these trades. You'll see my ups and downs, my highs and lows, and my smiles and tears.
This is the true story of one man, picked to live in front of his computer screen and find ways to make money off the Foreign Exchange. See what happens when markets stop being polite, and start being real! Dollar takes a nice swing at the Yen again!
The dollar made some good gains against the Yen again with the CPI report coming out better than expected. The Yen is headed for another tumble as the USD/JPY looks poised to make another run at 122.00
Chart Analysis:
EUR/USD
The Euro has been a pain in the butt the past couple of days as it just sits steady at around 3030. Yesterday looked like the pair was going to drop, but today's daily candle, which formed a doji, makes an even more convincing case that we'll see it fall soon. Daily stochastics are still in overbought territory but seem to be headed down and the pair has faced tough resistance around the 3150 area. I'm going to short this pair again but this time I'm going to go for a larger target with a wider stop. This means that I may be holding this trade for more than a day.
Trade Idea:
Short at market (3138); Stop Loss= 3190; Target= 3080; Target 2= 3050
GBP/USD
Well the Cable did end up making a run towards 9600 but it didn't quite make it. We've been seeing large swings in this pair throughout the days but it always fails to make any significant gains. Daily stochastics are trending up slightly and 4hr stochastics have just crossed up which leads me to believe that we haven't seen the end of the Sterling rally yet. I am expecting this pair to make another run towards 9600 but I think this time it will actually get there.
USD/CHF
Well the Swissy started the day looking like it was going to slice through its triple moving average resistance like it was a hot knife on butter. However, just like yesterday, the pair could sustain the rally and ended up falling towards the end of the day. Yesterday the pair ended up closing right at its 200 SMA on the daily chart, and today it's made a little more progress and has closed right at its 100 SMA on the daily chart. Daily stochastics are still trending up nicely and I still see potential for some good upward movement. I'd like to buy this pair if it can break 2400 and set a target for 2450. I will place my stop below the the triple moving average area so that my trade is protected. This is another "larger than normal" trade for me so this one could last more than a day.
Trade Idea:
Buy at 2400; Stop Loss= 2350; Target= 2450
USD/JPY
Woowee! This pair has really been moving! Once again the Yen is in danger of falling to 122.00 against the buck. Daily stochastics are trending up nicely and have plenty of room before reaching overbought territory. I think this pair will continue to move up to at least 122.00 which is a big psychological resistance area. Once it gets there, we'll either see another bounce back down or one heck of a rally!
fuside- I'm glad you've been able to get some value out of these posts. Don't worry about your bad week. I'm having a bad month! Remember, trading isn't a guarantee. You just have to give yourself the best chances of winning. The market will take care of the rest. Happy trading!