Month 2, Day 44 - 36-month forex trading challenge - 'nothing good to say about it'.

It's day 44 and perhaps the day I catch a wave in line with news that supports the direction of my trade(s). I don't trade the fundamentals, but inevitably these show up in price action at some point or other, and when the fundamentals point in the direction of the technicals it can be a special time.

The currency markets are dominated by news at the moment, and will probably continue to be for a while yet. With central banks obsessed with their headline interest rates and the decision to cut or not, it's probably a tricky time to be playing the most traded market in the world, but also a great opportunity to catch some major moves, providing you trade to a plan and are extremely disciplined in your approach.

MY EURGBP (T33S) short was hit by news yesterday (the wrong kind). Boris Johnson, the new incoming Prime Minister looks to be throwing his weight around. I must be honest I don't fully understand the politics (I'm not sure many people do), but his decision to petition the Queen to suspend Parliament was seen to increase the probability of a no-deal Brexit, which is generally regarded as being very bad for the UK economy. 

As a result GBP was the weakest performing currency yesterday and my EURGBP trade experienced some heat on the candle after entry. This was surprise news, and as such couldn't be avoided. 

However the bids were quelled (at least for a time), by the 200 and 50 SMAs on the 240 chart, which capped the ascent. I'm still in this trade, and until the 10 EMA crosses above the 30 EMA there is nothing to do. The news stirs emotions and without strict rules in place my reaction could have been to panic. My rules helped me remain calm and see the storm through, possibly to fight another day if the offer momentum resumes.

Overnight, it's been all news too. News that has helped my NZDUSD (T32S) and NZDCAD (T28S) trades. 

Forex Factory reported that the ANZ Business Outlook Survey had 'nothing good to say about it', and the Bank of Canada came out and said, there is 'no need' to cut rates. The market reaction was as expected, offers on NZD and bids on CAD.

NZDUSD (T23S) >

This pair is making all the right noises and I'm now looking to extend my targets beyond the 0.6230 level. If the trend prevails there's no reason why price can't break through the 10-year low (0.6209) and head for 0.5000. 

Now I seem to have caught what could be an extended move it would be a shame to exit early. My exit rules will get me out if things start to turn sour, but until then, it's hold, hold and hold.

Jesse Livermore advocated that it wasn't his thinking that made him money, but his sitting – sitting my friends is exactly what I intend to do!

NZDCAD (T28S) >

On this pair it's a similar story. If this trend prevails there is every chance we could see under my current target, which I'm now extending to 0.7030. Yes, this is a long way off, but price has been there before and could get there again. 

The good news with my NZDUSD and NZDCAD shorts is that they are both carry trades. This is an added bonus of holding them over an extended period of time.

My CHFJPY (T31S) short is still in play and although it experienced a bounce yesterday, the offers seem to be flowing back.

I'm altogether feeling pretty good. As I keep drumming into my head, it's not about how many times you win, it's how much you win when you win vs. how much you lose when you lose. If I'm right about NZDUSD and NZDCAD ,and my extended targets are ultimately hit, I'll be back on track and well on my way to hitting my £1M target in 36 months.

To help with my sitting, it's a sunny day already here on the Isle of Wight. A day at the beach could very well be on the cards, which would mean I'd miss the 10am and 2pm candle closes.

As my focus needs to be sitting, this might actually be a good thing!

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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.
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[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.]