Forex Trading 20/11/09

Having not been around for the last couple of weeks, doing something completely different. It seemed a little unusual getting up at my normal time of 05:00. I Use this time to prepare for the trading day, I read out allowed my Trading Plan and Mission Statement. I also like to either go for an early morning run or perform some empowering self hypnosis.

I check for announcements on Forex Factory and pass this information on to others.

Now on to the trading. Normally Kofi and I (my trading buddy) are chatting and will trade Cable (GBP/USD) breakout. We only trade this after 07:00 when the markets around Europe are opening, at this time there is more volatility in the market which gives more points in a shorter time frame. However having had a couple of weeks off I was a little rusty and completely missed the entry point long. Kofi entered the trade and got out at break even. He really should have taken the 15+ points that were available to him. He could also have stuck it out and gathered the points that he was after.


Having the attitude that there will always be another trade I decided to look at maybe using one of the other strategies that we know. I started to look at a strategy that uses hour candles and other indicators (MACD, Standard Deviation, Momentum and Chaikin Volatility). I had been assessing these indicators and decided that at 09:00 I would place a long trade.

I entered at 16589.9 and set my limit to 16626 (37) points, I set my mental stop approximately 10 points beyond the ma20.


Kofi and I continued our chat and around 09:30 we both confessed to being in the trade. What a pair we make!

Although my limit was 37 points I actually exited the trade with 25. After my earlier missed chance on the breakout I was very happy with the 25.