First Forex Trade of the Week
by Trader Rich
I finally made a trade this week! I’ve been a lot more picky following through on a setup opportunity since I reevaluated my strategy last week. I’m not just jumping on everything without first carefully considering it. I don’t know how this will work out for me but I’ve tried many things over the last 9 weeks and this is definately not one of them.
In my 9th week of the Forex Project, I am far from my goal of trading full-time. I have no confidence that at this point I can be consistent week in and week out. I’m just not experienced enough and haven’t been exposed to all the different types of market conditions that could arise. What I mean by this is that over the last 8 weeks, I’ve generally been trading a range market. I have not had much experience trading a trending market. This experience will come but it will take some time.
I’ve been humbled over the last 2 weeks by the forex market and some of you may sense a bit of despair in my posts. While I have lost a bit of my enthusiasm, I don’t attribute this to my trading performance alone. A lot of it has to do with external factors such as everyday responsibilities. Working full-time doesn’t allow much time for following the market as close as what I believe is needed. I’m continually working to automate as many things as I can so that it is all at my fingertips. As always, anything that I create to help me will always be given to you. Even if and when my trading does reach a point where I am successful, nothing I do at this site will ever require payment.
Getting back to my 1 and only trade this week, I shorted the EUR/JPY last night and closed the trade out about 8 hours later for a $734.00 profit. How did I make this profit?
For this trade, I tried using a combination of support/resistance and technical indicators. A couple of weeks ago I was preaching that support and resistance was everything and I thought this would be the only thing I needed to be successful. Although I still partly believe that today, I’m starting to realize how technical indicators are needed for confirmation. For this trade, I used support/resistance, keltner channels, and the CCI. This post is getting pretty long so I’m going to end it here and start a new post with more details of my trade last night.