Month 9, Day 163 to 181 - 36-month forex trading challenge - coronavirus.

Well it seems like an eternity since I last wrote a blog post. I've just gotten out of the habit and without habit nothing gets done.

Much of my trading routine that I do every morning is designed to build a habit that ensures a disciplined and consistent approach the the markets. As my trading mentor Jason Jankovsky once told me, 'discipline directly determines the size of your account balance'.

I've continued to record the weekly videos and if you're reading this post there are now four to catch up on. I've been working on making them shorter and punchier and am not necessarily recording content each and every day, only when there is something to say.

All of the videos are available to watch on the STG FOREX TV YouTube channel.

In my last blog post I talked about the resilience to keep going even when things get tough, and I'm very glad I followed by own advice.

In the last couple of weeks the market has found new direction for all the wrong reasons. The outbreak and persistent spread of coronavirus has sent panic into world markets. The beauty of currencies is that you can trade them both long and short and short signals specifically on USDJPY (T88S) and USDCHF (T86S)  have generated profits, which are having a positive effect on my account balance.

Below in USDJPY (T88S) you can see how on coronavirus fears price has crashed through the 3-year SIG. 1 level. This trade was initiated using my RANGE BREAK rules.

It's a similar story in USDCHF (T86S), this time on the 240 chart using my FULL HOUSE entry rules.

Note that I've added to this position and overnight taken 50% off my combined position at TE. TE is at an extreme (just above the 3-year low) where it's normal to expect a bounce. We're also at the periphery of the daily trend line making a bounce even more likely.

The psychological aspect of shorting a currency is very different to shorting a stock. When you short a stock you are betting against the future success of a company, and some might argue you're kicking it when it's down. With currencies that's not the case.

My trading has also been helped by the introduction of my RANGE BREAK strategy and a new BRAVEHEART strategy. Both execute and are managed on the daily charts. I now have five intraday strategies (240 chart), two daily strategies and one strategy I trade on the weekly charts (SIG. 1).

My daily strategies initiate in different market modes. RANGE BREAK takes advantage of a move from RANGE to TREND by a close above / below the RANGE high / low.

BRAVEHEART takes its inspiration from the Mel Gibson film by the same name. In one scene from the film William Wallace's men hold the line against the English attack. They 'hold, hold, hold', until the time is just right to attack. This strategy initiates in TREND mode and involves price rejecting or crossing and closing beyond the 200 SMA. The 200 SMA is 'the line', and how price interacts with it determines how the trade plays out. As always I have strict rules on my stop loss placement and criteria for a staged exit should things not go my way.

I currently have open trades using BRAVEHEART in EURUSD (T34L) and GBPJPY (T89S). You can see both below.

Firstly, EURUSD (T34L):

Secondly, GBPJPY (T89S):

On this second trade I used Emergency Exit 1 (EE1) to exit 50% of my position when the candle following my entry candle failed to make a new low. Technically I should have exited the final 50% on the close of the second day (again, no new low), but was away in London, so missed the signal. On this occasion staying in looks to have paid off!

There's nothing to do now, but to watch and wait. The market will do what the market will do. I have no control over it. All I can do is control what I choose to do in any given set of circumstances. I never want to decide this in the moment (where I'm at the mercy of emotions), which is why I have strict rules in place.

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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.
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.]