Forex Blog Week 8

Entering week 8, I have learned much.  The most knowledge has come from my everyday trading experiences.  There is just no substitute for this.  There is also no substitute to trading a real account with real money.  Demo accounts are o.k. to test your setup ideas, but other than that, there is no possible way that a demo account can prepare you for the real thing.  The main reason is because when you trade a demo account, there is no emotion.  Emotion is what moves this market and if you aren’t experiencing this emotion, your not learning.  To start your education, get a mini-account, trade single lots, and less volatile currency pairs.

Going into this week, I’m focusing on what has made prior weeks successful.  I’m focusing on support/resistance setups with the thought that the forex market will continue with its range trading environment.   In the meantime, I will continue to experiment with my relative strength calculations to prove their usefulness.  Last night, I completed a TRIX version of my relative strength charts.  TRIX is a triple exponential moving average of my Relative Strength values.  This provides a smoothing factor and perhaps more of a leading indicator.

You can view my 8 EMA Relative Strength Currency chart at: http://www.forexproject.com/staticfiles/ema_rs.php

The 8 EMA TRIX Relative Strength Currency chart is at http://www.forexproject.com/staticfiles/trix.php

The pairs I’m looking at possible setups for Sunday/Monday:

CHF/JPY (180-min)
USD/CHF (180-min)
EUR/USD (180-min)
GBP/USD (60-min)
EUR/CHF (180-min)
GBP/JPY (240-min)
NZD/USD (Daily)

I also forgot to mention that this week I am moving my default lot size from 1 to 2.  This will double my gains but also double my losses. 

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