From Newbie to Veteran: Journey of a Trader

looking at shorting CHF/JPY after support has been broken. 

Gold is climbing again towards its high after a big sell off over the past couple of weeks. 

The dollar has seen a sell-off against the Euro since memorial day. 

The Swiss Franc is getting stronger against all the major currencies. The fundamental of the Swiss economy are in alignment with the technical chart of the swissy.

The question is now which pair is better suited to take advantage of the strength of the currency. 

GBP/CHF has seen a great drop but I would wait for a pull back to go short

EUR/CHF looks interesting at this level

USD/CHF shows a similar chart but the risk seems lower.

This month has been up and down. I was sick for a couple of weeks causing me to miss many days of trading. Unfortunately many of those days were days of high volatility and opportunities for great trades.

Today I stuck to my new resolution of just a few trades per day.

I started with a Long of $EURUSD. I saw the euro break out of support around 1.3737, I decided to go long on the pull back thinking it would break though at least the 1.3745s. Unfortunately the movement has no momentum and I was stopped out.

I than shifted my attention to $GBPUSD. after the false breakout in the EURUSD the GBPUSD also went down. A bottom was forming around 1.6215. My reasoning was if the GBPUSD breaks the 1.6227 than it would go straight higher.

The Euro finally broke the 1.3741 after the Existing Home Sale numbers were released. My last trade was just a momentum continuation for about 8 pips.

In contrast to yesterday, today saw a bit more action. I suspect the bad snow storm affecting the North-East slowed down some trading in the New York session.

My one major trade was on the $GBPUSD. I shorted @ 1.6187 when the chart broke down the previous support. I covered my risk on the first half @ 1.6181 for a + 6 pips and got out of the rest @ 1.6174 for a + 13

Last month I think that I over traded causing most of my profits to be eaten by commission. This month I will try the limited ammo analogy and look for only high probability trades. We’ll see how it pans out.

Getting back into the market after a few days off is not easy.

Today is the perfect example of what happens when you trade against the trend and try to profit on the reversal. It is as dangerous as catching falling knifes. 

I realized that my trading style is more along the lines of breakouts and trend following instead of trend reversing. 

My first trade was in the $GBPUSD. It has been selling off all night on the London market. I saw some support forming around 1.5946. I tried to get long on the breakout but it turns out it was just a correction and I got stopped out of trade#1

My second trade was focused on the $USDJPY. Like the $GBPUSD a big moved happened over night. My thinking was that the move in the $USDJPY was over extended and a pull back was a strong possibility. I shorted the $USDJPY but again I got stopped out.

Finally on the $EURUSD. I tried to follow the trend and shorted it, but I think my entry was not optimal I got stopped out. My second trend was to trade the reversal. The EURUSD made a nice support around 1.3433. My long entry was good but I was stopped out because of the choppy movement in the $EURUSD.

“You got to know when to hold ‘em, know when to fold ‘em,
Know when to walk away and know when to run.
You never count your money when you’re sittin’ at the table.
There’ll be time enough for countin’ when the dealin’s done.”

- Kenny Rogers, The Gambler

The Key to survive in trading is to have enough capital to trade another day.