Hello Fellow Traders:
For those who are following along, last week was a rough week for trading. Here's my analysis and retrospect on the week gone by:
Evaluation:
AUD/JPY (Closed, Targets Reached)
We made a quick and easy trade at the top of the week selling AUD/JPY for a 30 pip profit. A small but successful trade. (100% successful)
AUD/JPY (Closed, Stopped Out)
Our second attempt in one week at an AUD/JPY short (a.k.a. sell the pair) did not turn out as well as our first attempt. We hit both our entry points at 73.80 and 73.55, but the pair just kept rising until we got stopped out at 74.20. We lost approximately 60 pips on that one, but the reward, had our target been reached, made it worth the minimal 60 pip risk. (0% successful)
EUR/JPY (Closed, Stopped Out)
We got stopped out on the EUR/JPY short. We were trading against the trend on that one making it a little riskier, but it was played fairly tight, risking approximately 150 pips. The S&P, and stocks in general, were over-bought and looked poised to fall, and we were expecting the JPY to fall as the market became averse to risk. As mentioned, this was against the greater trend, but there was plenty to back up the decision to sell the pair. If you are following me along on twitter, I do my best to follow up trade actions with the risk assessment and reasoning behind each one so that you can evaluate for yourself whether the trade is one you are willing to make. I am going to try to add sections to my blog soon to help you make the best trade decisions given your risk appetite and start-up investment. So pleased stay tuned for them. (0% successful)
USD/CAD (Closed, Stopped Out)
Last but not least, I bought 1 unit of USD/CAD because the USD is so ready to bounce. It didn't happen for us last week, but it's going to happen. I am currently re-assessing a new entry point so we don't miss out on what will likely be a considerable move. (0% successful)
AUD/USD (Ordered, Not Yet Open)
Our entry point to this sell this pair has not yet been reached. My order is still active, and I will update you if anything changes. For immediate updates on my trading activities, follow me on twitter (open an account and search for BDIforex (all one word) in the search bar). See below for more details.
Overall, it was certainly not the best week, but in re-evaluating the numbers and trends, there was nothing reckless about this week. My stops were kept tight, and the risks were calculated. There was nothing flimsy in my reasoning or research. Weeks like this provide as stark reminders of the Number 1 Rule in trading (or investing in general): Never invest more than you can afford to loose. Again, be on the look out to find out exactly what that means to you in future blogs. I will help you to know how much you to trade depending on how averse you are to risk and how much you are willing to invest into FX Trading. I win when YOU win! And to win, you have to take a couple of losses in the process. The key is to maintain enough of a nest egg to continue making smart trades even if a few of them don't work out as expected.
Expect updates on trades soon, as there are some pairs that look quite good at the moment.
Sample Portfolio:
Initial Investment: $500
Weekly Pip Gain: -280
Weekly Gains: -50%
Current Balance: $250
Portfolio Chart:
Status: Pair: Action: Result:
closed, AUD/JPY sell 1 unit, +30 pips
closed, AUD/JPY sell 1 +1 unit, -60 pips
closed, EUR/JPY sell 1 +1 unit, -150 pips
closed, USD/CAD buy 1 unit, -100 pips
Weekly Total: 4 trades, Trade Report Card 25%, or 1/4 trades profitable (25%) -280 pips
Life Total: 4 trades, Trade Report Card: 25% or 1/4 trades profitable (25%) -280 pips
Want to get up to the minute details on my trades? Join me on twitter and you can get my most recent orders and trades emailed to you or sent to your mobile phone.
www.twitter.com, search for Aaron Reid or BDIForex
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