Month 4, Day 69, 70, 71 & 72 - 36-month forex trading challenge - health is wealth.
What is wealth? Is it money, is it success of some kind, or is it something else altogether?
Well, over the last few days I've been feeling dreadful and spent most of the weekend and yesterday (Monday) in bed. It's a timely reminder that the pursuit of anything becomes extremely difficult without health.
Health though is the thing we all tend to compromise on and put off sorting out. That extra hour at the desk sometimes seems more important than a trip to the gym. A missed meal to cram more work in can often be prioritised over proper nutrition.
Feeling ill has impacted my discipline, and my morning market analysis went to pot for a few days. As a result of losing my discipline I felt a loss of control and actually quite depressed. Yesterday, enough was enough and I dragged myself out of bed, albeit late, and did my (afternoon) market analysis. As I took action I started to feel better, which makes me wonder how much of our physical wellbeing is linked to our mental state? Quite a lot I imagine.
I've also booked a well man check-up at a private hospital. I spend more money servicing my car each year, so it seems only right that I spend at least the same amount checking myself over to catch any problems early. My wife is also having one done and it seems a small price to pay for peace of mind.
I've also started taking Manuka honey. Known for its medicinal and antibacterial properties a tablespoon each morning is now the order of the day. Yes, it's expensive stuff, but without health my ability to trade and trade effectively is severely compromised. Health is in fact the real wealth.
As a result of being under the weather I've not documented all of my trades in the blog or through the STG FOREX TV YouTube channel. However, all trades have been logged in my spreadsheet where full accountability has been maintained.
The forex market continues to be difficult to trade. I'm right in the direction of my trades more often than not, but whipsaw action in response to unscheduled / surprise news can erode any paper profit quickly.
I experienced this on a number of trades last week, and this week EURJPY (T48S) and CHFJPY (T50S) were both halfway to my initial target (T) before offers in JPY sent things the other way. I was stopped out of the latter trade, but am still clinging on to my EURJPY short, at least for the moment.
The short-term volatility was summed up in a post I saw on Forex Factory. I disregard most of the comments I see on this forum (those posted by retail traders), but this one stood out, as it talked sense.
I don't trade the news, so personally am not looking for the reaction reversal. I do however increasingly expect heat in my trades in response to news, and need to maintain the resilience to stay calm and hold, unless there really is a change in market conditions (as defined by my rules).
Something I've been watching for a while now is price's interaction with what I call SIG. 1 levels. These are the 10, 5 and 3-year highs and lows I plot on my charts at the start of each new month.
In my experience when price rejects these levels it can be an important clue that things have changed, and a trade in the opposite direction might be on the cards.
These are levels the longer-term trader watches, and by longer-term trader I mean the professionals. The professionals sat on currency desks in investment banks are not trading intraday. They're watching levels and building positions on the weekly and monthly charts.
AUDUSD (T15L) >
AUDCAD (T16L) >
GBPUSD (T17L) >
The above three trades are now in play on the weekly chart. These are longer-term positions executed on price's rejection of a SIG. 1 low on a Z or X reversal candle. As they've been executed on a the weekly chart my entry will be less precise and I expect some heat at least in the short-term.
Given the wider stop required on this time frame, I'm risking 4% of capital on each position, instead of my usual 2%. These trades will be monitored each week on the relevant weekly chart and the same correlation rule I utilise in my other strategies apply to this SIG. 1 strategy too.
Although I don't trade the news, living in the UK I'm very conscious of the whole Brexit debate and the deadline of 31 October fast approaching for a deal with the EU or a no-deal Brexit. I was right in my prediction on the EU referendum (23 June 2016), where Brexit was voted across the line, but stopped out of my GBPUSD short position on overnight news as the regional results dripped in (at one point it looked like the campaign to remain was likely to win).
The deal or no-deal result will be more clear cut, and in my opinion we'll get a deal of some sort, but likely at the eleventh hour. The EU wants it, the UK wants it, but at the moment both sides are too stubborn to break the deadlock.
It appears this morning in an article published on Reuters that Goldman Sachs share my view. They are recommending clients go long GBPUSD with the odds of a deal still low, but more likely.
Only time will tell, and I'm expecting a lot of turbulence in T17L in the meantime. The important thing though is that I'm positioned to take advantage of a potential deal, and the considerable upside. On the downside my risk exposure is capped and within tolerance levels.
[Unfortunately I've been unable to take this trade in eToro due to restrictions over the distance I can place my stop loss relative to entry.]
Trading is about taking risk to generate reward. As the saying goes, you have to be in it to win it!
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.]
Well, over the last few days I've been feeling dreadful and spent most of the weekend and yesterday (Monday) in bed. It's a timely reminder that the pursuit of anything becomes extremely difficult without health.
Health though is the thing we all tend to compromise on and put off sorting out. That extra hour at the desk sometimes seems more important than a trip to the gym. A missed meal to cram more work in can often be prioritised over proper nutrition.
Feeling ill has impacted my discipline, and my morning market analysis went to pot for a few days. As a result of losing my discipline I felt a loss of control and actually quite depressed. Yesterday, enough was enough and I dragged myself out of bed, albeit late, and did my (afternoon) market analysis. As I took action I started to feel better, which makes me wonder how much of our physical wellbeing is linked to our mental state? Quite a lot I imagine.
I've also booked a well man check-up at a private hospital. I spend more money servicing my car each year, so it seems only right that I spend at least the same amount checking myself over to catch any problems early. My wife is also having one done and it seems a small price to pay for peace of mind.
I've also started taking Manuka honey. Known for its medicinal and antibacterial properties a tablespoon each morning is now the order of the day. Yes, it's expensive stuff, but without health my ability to trade and trade effectively is severely compromised. Health is in fact the real wealth.
As a result of being under the weather I've not documented all of my trades in the blog or through the STG FOREX TV YouTube channel. However, all trades have been logged in my spreadsheet where full accountability has been maintained.
The forex market continues to be difficult to trade. I'm right in the direction of my trades more often than not, but whipsaw action in response to unscheduled / surprise news can erode any paper profit quickly.
I experienced this on a number of trades last week, and this week EURJPY (T48S) and CHFJPY (T50S) were both halfway to my initial target (T) before offers in JPY sent things the other way. I was stopped out of the latter trade, but am still clinging on to my EURJPY short, at least for the moment.
The short-term volatility was summed up in a post I saw on Forex Factory. I disregard most of the comments I see on this forum (those posted by retail traders), but this one stood out, as it talked sense.
Something I've been watching for a while now is price's interaction with what I call SIG. 1 levels. These are the 10, 5 and 3-year highs and lows I plot on my charts at the start of each new month.
In my experience when price rejects these levels it can be an important clue that things have changed, and a trade in the opposite direction might be on the cards.
These are levels the longer-term trader watches, and by longer-term trader I mean the professionals. The professionals sat on currency desks in investment banks are not trading intraday. They're watching levels and building positions on the weekly and monthly charts.
AUDUSD (T15L) >
Given the wider stop required on this time frame, I'm risking 4% of capital on each position, instead of my usual 2%. These trades will be monitored each week on the relevant weekly chart and the same correlation rule I utilise in my other strategies apply to this SIG. 1 strategy too.
Although I don't trade the news, living in the UK I'm very conscious of the whole Brexit debate and the deadline of 31 October fast approaching for a deal with the EU or a no-deal Brexit. I was right in my prediction on the EU referendum (23 June 2016), where Brexit was voted across the line, but stopped out of my GBPUSD short position on overnight news as the regional results dripped in (at one point it looked like the campaign to remain was likely to win).
The deal or no-deal result will be more clear cut, and in my opinion we'll get a deal of some sort, but likely at the eleventh hour. The EU wants it, the UK wants it, but at the moment both sides are too stubborn to break the deadlock.
It appears this morning in an article published on Reuters that Goldman Sachs share my view. They are recommending clients go long GBPUSD with the odds of a deal still low, but more likely.
Only time will tell, and I'm expecting a lot of turbulence in T17L in the meantime. The important thing though is that I'm positioned to take advantage of a potential deal, and the considerable upside. On the downside my risk exposure is capped and within tolerance levels.
[Unfortunately I've been unable to take this trade in eToro due to restrictions over the distance I can place my stop loss relative to entry.]
Trading is about taking risk to generate reward. As the saying goes, you have to be in it to win it!
*********
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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