Month 1, Day 9 - 36-month forex trading challenge - FOMC and trade update.
Well last night saw the release of the FOMC (Federal Open Market Committee) minutes. As always, it's not what they say, but how the market reacts that matters.
I was out and about, so not in front of my screens when they were released, but checking in later there seemed to be little market reaction. However, this morning it's apparent the USD has weakened against its counterpart currencies. From my overnight relative strength analysis this is clearly visible.
This has put both my GBPUSD (T2S) and AUDUSD (T7S) trades under pressure. However, there's no need to panic. The market always ebbs and flows – arguably it's a living thing that needs to breathe. The ups and downs are a natural part of its ecology, what matters is not any individual move, but the overall market direction.
As I write this, both GBPUSD and AUDUSD both seem to be turning round, but as always, only time will tell.
I'm off to London today with my wife, so will be away from the market for the majority of the day, but checking in when I can. It's a much needed and rare break away from the children, so I'll be doing my best to relax, which is never easy when trading is your passion and now, principal source of income!
Past experience has taught me that you can often be too early to a trade, and the market sometimes gives you a second chance. Even if your initial entry was a losing trade, it's important not to let the bias of an earlier loss cloud your judgement if a new and favourable entry signal presents itself.
This is exactly what's happened in USDCAD and GBPAUD overnight. Both, despite earlier losses this week provided an entry signal on the 6am candle close.
USDCAD (T9S) >
Here a TREND signal showed up with the 10 EMA (Exponential Moving Average) crossing below the 50 SMA (Simple Moving Average). As a condition of this entry the 50 SMA must be flat or in the direction of my trade. Note how it slopes down and also the cluster of reversal candles before. My stop is 20 points above the 50 SMA.
GBPAUD (T10S) >
Here a FULL HOUSE signal has shown up. I entered on the S reversal candle, which rejected the 50 SMA.
I'm now just above my maximum permitted risk exposure (1/3 x maximum drawdown), so no more trades are permitted.
It's now time to sit on my hands, enjoy London and see if the market rewards my efforts!
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.]
I was out and about, so not in front of my screens when they were released, but checking in later there seemed to be little market reaction. However, this morning it's apparent the USD has weakened against its counterpart currencies. From my overnight relative strength analysis this is clearly visible.
This has put both my GBPUSD (T2S) and AUDUSD (T7S) trades under pressure. However, there's no need to panic. The market always ebbs and flows – arguably it's a living thing that needs to breathe. The ups and downs are a natural part of its ecology, what matters is not any individual move, but the overall market direction.
As I write this, both GBPUSD and AUDUSD both seem to be turning round, but as always, only time will tell.
I'm off to London today with my wife, so will be away from the market for the majority of the day, but checking in when I can. It's a much needed and rare break away from the children, so I'll be doing my best to relax, which is never easy when trading is your passion and now, principal source of income!
Past experience has taught me that you can often be too early to a trade, and the market sometimes gives you a second chance. Even if your initial entry was a losing trade, it's important not to let the bias of an earlier loss cloud your judgement if a new and favourable entry signal presents itself.
This is exactly what's happened in USDCAD and GBPAUD overnight. Both, despite earlier losses this week provided an entry signal on the 6am candle close.
USDCAD (T9S) >
GBPAUD (T10S) >
I'm now just above my maximum permitted risk exposure (1/3 x maximum drawdown), so no more trades are permitted.
It's now time to sit on my hands, enjoy London and see if the market rewards my efforts!
*********
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.]
Comments
Post a Comment