Month 1, Day 12 - 36-month forex trading challenge - update and time to add to GBPAUD.
Day 12 of the forex trading challenge and I have four trades in play.
At 10am yesterday, I entered a short position on USDCHF (T12S). I'd been stalking this entry for a while and having hit my target on GBPAUD (T10S) and taken off half of my position for a profit of 1% of opening capital the margin limitation was lifted on the account. I took this new trade on a TREND strategy.
This morning my trade is under a little bit of pressure, but there's nothing to do as yet. If the 10 EMA (Exponential Moving Average) crosses back above the 30 EMA I will lighten up on 1/3 of my position, but so far, so good.
I have exit rules in my trading plan to both get me out of winning trades, but also to lighten up on losers. These rules help me to hold my winners and cut my losses short, which is a critical element of any successful forex trading strategy. What's more, because these rules are written down, my job is just to follow them. This removes any emotion that could cloud my judgement or see me make poor decisions in the heat of battle!
The USD has gained some strength overnight, while GBP has weakened. This has helped my GBPAUD short, which is tracking down primarily on GBP weakness, as opposed to AUD strength.
This may give me an opportunity to add to my position on the 10am close. If the YX candle holds I'll enter a second position and retain my stop at the 1.7959 level. As this trade is progressing well I want to give it room to breathe, which means, in line with my rules, keeping my stop beyond the 50 SMA.
A signal is also likely to show up in GBPUSD, but I will pass on this in favour of adding to my GBPAUD short for three reasons:
Moving from an approach built on pullbacks to one where I go with momentum, radically improved my trading results. Sure, it might seem like I'm paying a premium to get in, but if it's more likely to be a winning trade because it's backed by momentum, then it's a price I'm prepared to pay.
This second position is already moving in my favour, but only time will determine how things turn out.
Is it really possible to turn £50K into £1M? Over the next 36 months I'm going to find out by trading my personal account with full transparency.
Follow my 36-month challenge to turn £50K into £1M.
Read my blog here: https://stgforextvforexchallenge.blogspot.com
Subscribe on YouTube here: https://www.youtube.com/channel/UCyGySJ5IeDjq-DIJPU7nYvw
[Please note, the information presented is general educational material and does not constitute trading advice.
Trading foreign exchange (forex) on margin carries a high level of risk and may not be suitable for you or your circumstances.
Before trading forex you should investigate all of the risks, including the possibility that you could lose more than your initial investment.
It’s important to consider your investment objectives, level of experience and risk appetite. If in doubt seek advice from an independent financial advisor.]
At 10am yesterday, I entered a short position on USDCHF (T12S). I'd been stalking this entry for a while and having hit my target on GBPAUD (T10S) and taken off half of my position for a profit of 1% of opening capital the margin limitation was lifted on the account. I took this new trade on a TREND strategy.
I have exit rules in my trading plan to both get me out of winning trades, but also to lighten up on losers. These rules help me to hold my winners and cut my losses short, which is a critical element of any successful forex trading strategy. What's more, because these rules are written down, my job is just to follow them. This removes any emotion that could cloud my judgement or see me make poor decisions in the heat of battle!
The USD has gained some strength overnight, while GBP has weakened. This has helped my GBPAUD short, which is tracking down primarily on GBP weakness, as opposed to AUD strength.
A signal is also likely to show up in GBPUSD, but I will pass on this in favour of adding to my GBPAUD short for three reasons:
- I'm already profitable in GBPAUD.
- The reward-to-risk ratio is better in GBPAUD – there's more potential room for it to fall.
- There are speeches from the Federal Reserve tonight, which could impact the USD. I don't want to be stopped out of a GBPUSD trade on potential whipsaw action.
- Initial position (2%), is at entry, so risk is 0%.
- Second position (2%), just entered, carries 2% risk (£999.68).
Moving from an approach built on pullbacks to one where I go with momentum, radically improved my trading results. Sure, it might seem like I'm paying a premium to get in, but if it's more likely to be a winning trade because it's backed by momentum, then it's a price I'm prepared to pay.
This second position is already moving in my favour, but only time will determine how things turn out.
*********
Is it really possible to turn £50K into £1M? Over the next 36 months I'm going to find out by trading my personal account with full transparency.
Follow my 36-month challenge to turn £50K into £1M.
Read my blog here: https://stgforextvforexchallenge.blogspot.com
Subscribe on YouTube here: https://www.youtube.com/channel/UCyGySJ5IeDjq-DIJPU7nYvw
[Please note, the information presented is general educational material and does not constitute trading advice.
Trading foreign exchange (forex) on margin carries a high level of risk and may not be suitable for you or your circumstances.
Before trading forex you should investigate all of the risks, including the possibility that you could lose more than your initial investment.
It’s important to consider your investment objectives, level of experience and risk appetite. If in doubt seek advice from an independent financial advisor.]
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