May Issue of Currency Trader Mag Here Now

The May issue of Currency Trader Magazine has been released.  The highlights of this month's issue include the following:

•  Trading the Mexican Peso
•  Interview with Money Manager Peter PanHolzer
•  Forex Money Management Strategies
•  The Euro Index
•  Japan and the Yen: New Era or more of the same?

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Popularity: 2%

Frustration Bottling Up

I'll admit that the frustration of losing is bottling up.  I did manage to end the losing streak by getting a couple of smaller pip wins today after my 30 pips loss.  I ended the day -15 pips.  I sent a message to Rob this afternoon stating my frustration and he had 2 suggestions for me:

1. Stop trading the EURO!  He thinks the currency pair is a "turd" and that it hardly moves.  He told me to stick to the GBP which has been moving big time over the last 2 weeks.
2. Decrease my lot size on a day with no economic news whatsoever.  I only traded 1 lot, followed my rules, and only lost 30 pips so it ain't so bad

I sent a follow-up question asking him what pairs he likes to trade most. 

Popularity: 6%

Magdalena Speaks About Her Forex Experience

I like to post some of your comments sometimes because I find them so beneficial to my learning process and know that they can do the same for you.  This is an email I received from Magdalena yesterday.  I can totally relate to her comments because we are at similar stages.  Maybe you are to.

I started learning about Forex last October and was totally amazed for two reasons: The whole concept of trading FX seemed so perfect and natural that I felt like I discovered the best way to make a living there is. My master thesis was on hedging foreign currency transactions in international trade yet it has not occurred to me until then you can actually make money yourself trading forex. I blame it on the fact that I got my master's in Poland and my home town university's curriculum missed a lot of practical and useful information, since I refuse to admit that it's probably me being a dummy and it never dawned on me before.   After an initial immersion into the market I opened my first demo and doubled it within a month without much effort and occasionally missing trading days. I didn't have any strategy whatsoever, I went with my gut feeling and basically after a while, my way to trade would be to open (I only traded EUR/USD) 2 positions on the same currency just in different directions waiting for each position to make a 10 pip profit. I didn't use any stops based on an assumption that what goes up must come down and vice versa - pretty naive thinking for someone who has degree in finance. It worked beautifully for a while though. Then came December and a couple of big loses that I had to take which pretty much ate all my profits from previous month. This is when I decided to actually learn something and went on a crazy search for a Holy Grail. I guess we all do that at some point Hundreds of websites, offers and promises. The only reason why I didn't buy any system or program is because  simply couldn't afford it. But I kept on looking and got every book from the local library that something to do with trading. And after a while I got to a point where I didn't know anymore what works what doesn't and worst of all I stopped trusting my own judgment. I was dazed and confused.   Then I bought Raghee's book and all of the sudden realized that there is no perfect system. That you can chose basically any strategy and if you have the discipline (the hardest part of it all !!!) to stick with it, you will become successful. So this is where I am at now… Trying to train my eye to see set ups as described in the book and get my personal feel for the market. So far I have found that I get some pretty good trading ideas, however my execution sometimes is not up to par.   I could ramble on about my trading experiences for hours since no on around me shares the interest…Right now I trade a small mini account just to get the feeling of the real account and hope that within next few month I will have enough to open standard account and will be consistently making profit.       Talk to you soon,     Magdalena

Popularity: 3%

First Trade 1 PIP Profit!

OK.  I closed out the GBP/USD position with a 1 pip profit for 2 reasons:

1. European session is over
2. All major currency pairs are consolidating in expectation of US economic reports this morning.

I couldn't set the limit to close out the pair at break-even so I performed it manually.  That is why I profited 1 pip.

Good thing I did.  The pair moved upwards 20 pips right after I closed it.   

I'll regroup and see if any setups emerge during the next couple of hours.

Popularity: 4%

Know your central bank characteristics

There is a new forex article on Investopedia called, "Get To Know The Major Central Banks".  Kathy Lien from FXCM gives a nice overview of the characteristics of the major central banks including structure, mandate, frequency of meeting, and key policy official.  Seeing that the Central Banks single-handedly can affect the direction a currency prices, it's a good idea to familiarize yourself with the way they tick.

Get To Know The Major Central Banks

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Day traders find new outlet in foreign exchange wagers

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I am posting this article from last year because this is the actual article I read back in July 2005 that first exposed me to the unknown world of Forex and actually drove me to the bookstore within an hour to find out more.  It was originally published in the Wall Street Journal and I'm happy to have found it.  

By Craig Karmin and Michael R. Sesit, The Wall Street Journal

At an hour past midnight, when he gets home after working as a disc
jockey for a New York City classic-rock station, Marc Coppola checks
the market and starts trading.

Having lost $750,000 trading stocks after the technology-stock bubble
burst in 2000, his appetite for shares is greatly diminished. Instead,
he is joining thousands of other individual investors by betting on the
global currency markets.

Mr. Coppola, brother of actor Nicolas Cage and nephew of movie director
Francis Ford Coppola, earlier this year pocketed about $1,400 on a
$60,000 bet that the euro would rise against the dollar. In March, he
reversed course, betting $40,000 that the euro would fall. Once it
slipped to $1.30 from $1.31, he cashed in half of his investment, then
soon after closed out the rest.

"I got scared out of the trade," Mr. Coppola says regretfully. "I
should have said, 'the euro is going lower' and rode it down to the
$1.20 area."

[Click READ MORE to continue]

[Read more]

Popularity: 2%

Technical Analysis of the Currency Market

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There is yet another Currency book being released at end of April titled, "Technical Analysis of the Currency Market: Classic Techniques for Profiting from Market Swings and Trader Sentiment" by Boris Schlossberg.  Boris is a currency strategist for FXCM and the release of his book follows his fellow colleague, Kathy Lein's release last year.  The book is described as a comprehensive guide that demonstrates how technical analysis can
generate profit-making strategies in the foreign exchange market.

It's amazing how the Foreign Exchange market continues to explode in popularity.  There is a constant influx of book releases and new brokers seem to be flooding the market.

Popularity: 2%

Inside the Mind of an Elite Currency Trader

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A new book was released last month titled "Warrior Trading : Inside the Mind of an Elite Currency Trader" by Clifford Bennett.  It seems like I've purchased every currency trading book available except this one.  I may go to Barnes and Noble and see if it's available to skim through.  Here is a description of the book:

One of today's leading currency forecasters shows readers how to
develop the focus, attitude, and mental discipline of top traders

Warrior Trading provides traders with a path to trading success by
developing a mentality and emotional framework common to successful
traders. Warrior Trading includes an enhanced discussion of technical
analysis, and an explanation of how global economic forces are changing
and impacting the markets. Filled with in-depth insights and expert
advice, this comprehensive guide explains the importance of
understanding the market's underlying fundamental and technical
reality-letting traders take advantage of those moments when the
perceptions of most traders are at odds with the underlying reality to
score big in the market.

 

Popularity: 2%

April Issue of Currency Trader Magazine is Here

I love this online magazine.  There isn't anywhere else you can go to read a full-length magazine exclusively on Forex Trading.  In addition, the content is all exclusive and hasn't been seen anywhere else.  The April issue was just released 4 hours ago and contains the following top stories and more:

1. Battle of the Bucks (US Dollar vs. Canadian Dollar)
2. Top Forex Traders of 2005
3. Hedging Overseas Investments with the Dollar Index
4. Candlestick Reversal Patterns
5. Understanding Forex Supply and Demand

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Popularity: 3%

Missing in Action

I’ve been missing in action most of this week.  I’ve been recovering from my stomach bug and been taking some time off due to a hectic schedule and other responsibilities.  I haven’t dedicated nearly enough time to the currency market or the Forex Project this week.  

It seems like my beginning of the week analysis of the EUR/USD was not too bad.  For those of you that don’t remember, I was going to try to improve my technical analysis by "pretending" to be a Currency Strategist.  I use the word pretend by if you really think about it, we are all our own best Currency Strategist.  So though I was analyzing the market as if I was a Currency Strategist, the simple fact is that we are all Currency Strategists.  

My prediction from beginning of week was the following:

Prediction
EUR/USD may remain in the 1.2000 - 1.2200 range.  If the psychological important 1.2000 is broken, look for furthur downside to 1.1868.

Popularity: 3%

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