A Winning Forex Trading Philosophy

I'm starting to believe that being successful trading Forex has more to do with your philosophy than anything else.You cannot trade based on how much money you want to make. You cannot trade based on how much money you need to make. This means that you can't push money into the market, desperately searching for opportunity, risking a large portion of your net asset value in the process.You m...

Forex Gridding Strategy

Okay, I'm pretty much sold on this idea. Here are some advantages to gridding the AUDJPY on the upside:Each purchase represents a carry position while waiting for it to become profitable.Extremely limited downside risk when set up properly.Excellent earning potential in choppy market conditions.Using my nano-account here is what I set up last night. Place a limit order for NNN units every...

Regret Will Kill Your Forex Account

OK, so you just pulled the trigger on a trade and every bone in your body told you not to. You violated the rules dictated in your trade plan and you watched a small profit immediately turn into a major loss.Sound familiar? What do you do?You get over it, that’s what you do! Regret over a bad trade will eat your account from the inside out. Regret is a more powerful emotion than most traders recognize....

AUDJPY Stop Losses Hit

Well, positions entered overnight and this morning have now been stopped out. We are approaching the SMA-50 (simple moving average over fifty measurements) at approximately 96.37 and we are likely to enter a buying zone soon.Obviously, the risk is that it won't bounce, or worse, that it will bounce, give us false confidence, and then fall like a rock.In any case, I'll be taking small chunks w...

AUDJPY Bounce?

Well, it looks like it is going to bounce up. On the chart below you can see the AUDJPY dropped to touch the SMA (simple moving average) around 97.75 about the time I posted about being stopped out.Since I was taken out of several positions, I did sneak another one back in and I do still have a few that are still underwater.Whether or not it will mean anything, the 1hr chart is showing a nice...

Crowing Too Soon?

I have now been stopped out of my AUDJPY positions (see previous post).Now, will it continue to go down, and make me happy, or will it reverse and drive upwards now that it has shaken me off?Profits in the Forex are a truly wily ga...

AUDJPY At 100 Pips

So, if you followed the advice in my last post you'd be sitting pretty with some AUDJPY carry trades profitable to the tune of 100 pips.So, while I'm sitting on a nano-account, if things continue to go up I'll be able to accumulate more and more position at very little risk. Why? Because all of my positive positions have a stop loss set at a point that ensures that I cannot lose money on those...

Commodity based currencies in play

It is in times like these that you want to be trading the commodity based currencies. Why? Because markets are undergoing a change in perceptions - they are adjusting their growth & inflation forecasts. No currencies in these circumstances are better than the A$ - against the USD of course since commodity prices are based in USD. Looking at the charts:1. AUD-USD: Its apparent from http://finance.yahoo.com/q/bc?s=AUDUSD=X&t=5y&l=on&z=m&q=l&c=...

Suddenly, It's a Bleak Midwinter for Housing and Lending

If you're wondering how the housing market collapse in the US will impact your favorite Central Banker (and interest rates), here's an interesting article to help support your fundamental Forex analysis:***************************************Suddenly, It's a Bleak Midwinter for Housing and LendingBy Susan C. Walker, Elliott Wave InternationalJanuary 7, 2008 In the bleak midwinter, Frosty wind made...

AUDJPY Carry Loading Time?

Well, it's always impossible to call a bottom, but given the amount of downturn recently, it might be time to start loading up on a bit of AUDJPY.For example, you could enter some minor positions right after you witness some support after a little bit of free fall. Whether or not it's a bottom does not matter as long as you are investing small enough quantities with a plan to hold on long eno...