Forex Trading -Learn and trade with me

Learn Online Forex Trading - Details of my forex trade on 25-May-06 (Thursday)

This is a very interesting trade I placed on USD/CAD currency pair. First let me tell you few things about my trading style -

1. I trade on 30Min chart and 5 min. Chart.
2. 30 Min. chart is used to judge market direction. 5 min chart I use to place entry-exit points.
3. I use moving averages to judge market directions.
4. I also use MACD and RSI to confirm market direction and identify if there are any sign of reversals.
5. I never keep my trades open over weekend.

(If you don't understand the above jargon, thats OK. We'll cover these in next few days to learn online forex trading)


So lets go through my analysis of USD/CAD -
On the chart as you can see the moving averages are clearly bearish for USD/CAD.

1. The RSI was approaching 50
2. MACD is below Zero line
3. So, this looks like a bearish set up to me with CAD looking strong.
4. My entry is marked with a little red oval at 1.1089
5. My stop was 1.1120 (31 pips away from my entry order)
6. I placed my exit point at 1.1006 which looked like an important resistance.

So, after this I placed the trade and went to office. Here what happenned after that -

Market went to a range mode and kept oscillating between 1.1090 and 1.1050. I kept my trade open overnight and next morning which was Friday and I saw it continuing within the same range and was at a profit of 12 pips.

Since it was a Friday, it was a last trading day of the week and as per my trading strategy, I never keep my trades open and so I closed my trade with +12 pips.

So, what do you think about this trade? Do you have any questions? If so, please post in comments and I'll try to address in next blog post.

All forex traders, please give me yoir comments about this trade. Don't be afraid to pinpoint any mistakes I may have made. Afterall I too am learning online forex trading

# posted by Money Maker : 8:25 PM