I've decided to ease back into it by doing paper trades for the month of June and seeing what sort of results i get from that.
Last summer we spent hours sitting in front of the computer waiting for something to happen. Wrong. Just wrong.
New tactic, inspired by FirePips (excellent website) is to trade on 4hour charts. Leaving us free to merely look at the charts every 4 hours or so.
So i've been reading up on the trading again, getting myself familiar with the signals and i started paper trading again today.
Today consisted of 5 trades with an outcome of 20pips. Sounds rubbish i know, but i will elaborate further.
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Trade 1 - GBP/USD - Sold @ 1.4644 - Stopped @ 1.4679 = -35pips
Despite the loss i'm quite happy with this trade, the second bar is weak but i got into the trade a bit too early and should've waited for it to develop. The third bar in the picture represents further weakness and as we can see it begins to drop off, this screen shot was taken at around 10.30pm and i believe it dropped further before i closed down for the night.
Trade 2 - EUR/USD - Bought @ 1.2216 - Closed @ 1.2268 = +52pips
Very happy with this trade, at one stage it was at +130pips, i should perhaps have bitten the bullet and taken the profit but i wasn't watching the trade at the time. The third bar in the screen shot is where the profit was made. I decided to get out upon advice from me Dad as we were unsure of what it was doing.
Trade 3 - AUD/USD - Bought @ 0.8371 - Closed @ 0.8388 = +17pips
Similar to the above trade, hit +65 at it's highest.
Trade 4 - GBP/JPY - Sold @ 133.46 - Stopped @ 133.81 = -35pips
Very similar to trade one, i should have waited for it to develop further and as you can see in the picture, it eventually dropped off as i had first thought. Lesson learnt? More patience!
Trade 5 - EUR/JPY - Bought @ 111.36 - Closed @ 111.87 = +21pips
Despite the low yield of pips this is probably the trade i am most happy with today. Clear sign of strength as shown in the picture, reached about +150pips at it's highest point, should have got out a bit sooner i guess!
Interestingly, the three winning trades of the day had similar looking up bars closing in the middle before dropping off. Worth taking note of i think.
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My only criticism of the day is that whilst the 4H leaves time to do other things that a lot of pips were missed out on. Of course Profit can be set, but the decision must be made at what to set this at. I can't remember if i spoke about it previously but a 2:1 ratio is recommended. For instance if your stop loss is at -35 (as it was for these) then you would look to make +70pips. Perhaps this is the best way to proceed.
That's all for now, up early for the 7am signal!
KT.
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