Forex Trading start up

To start trading forex is not hard, the tough bit comes after you've experienced a string of losses just as I did recently.The ability to learn from ones mistake is really crucial here and it is that part of forex trading I have the most problem with. Forex can be trade as CFDs or as a spreadbet (which i do).The advantage of spreadbetting in the United Kingdom  is that it is essentially tax free as long as you have another income avenue on which you  pay tax.Spreadbetting companies that allow you to start for as low as £50 include the following:

Igindex,CMC Markets,Capital Spreads,GFT and City Index.

Try Demo trading as much as possible and get up to speed with some solid reading.Some spreadbet companies will allow you place trades for as low as 10p per point in your first six weeks.

Trade 8

The trade opportunity I was waiting for has finally presented itself.The EUR/USD downtrend has finally ended its throwback.I have iodentified the formation of a pipe indicating throwback might be over.This is supported by MACD and stochastics.Trade was thus entered has follows:

Trade direction: short
Stop loss:13550
Target price for exit:13400

Potential loss (risk):  £50

Actual Entry point: 13500
Trade size (£ per point) :£1
Target profit: 100pips

Trade was exited for 50 pounds loss and reentered at 13621 with stop loss at 13671.profit target remains the same.

Comment: closed for a loss.

Verdict: No loot.

Surfing the tsunami

After my last trade i have laid off trading for a while to refocuss my energies.I now ready for another round of trades.I have now decided to trade just the GBP/USD and the EUR/USD.My next trade hopefully will be to short the EUR/USD.Now i can relax and do some chart watching :-)

Litany of Woes

Its been a crazy trading week for me,a week where i flouted all my trading rules and decided to go for broke.The markets are a costly way to find out what indiscipline can do.In trading the only control you have are your rules and if that goes out the window,the broker gets paid and this week i wrote a big fat check to my broker.I'm now looking for ways to cope with my emotional trading pattern of trying to fly before i can run.Maybe i should set weekly profit targets which when achieved means trading stops for the week? One good thing that's come out of this is i have learnt how to combine daily and 4hrly charts to give good trading signals.I can also now see the essence of running a weekend diagnostic of the market since background noise is diminished.

05/02/2011

Forex analysis
 I am thinking of using orders to trade to avoid the stress of always trying to check up on the market.

Order Trade
During my weekend analysis i have singled out a currency pair for my order trade .The daily stochchastics and MACD and pipe formation on NZD/USD daily chart are all indicating a shorting opportunity.4hrly chart is still in downtrend.I am setting up an order trade as follows:

Trade direction: short

Stop loss:7754
Target price for exit: 7557

Distance between stop and target:197
Distance between stop and target/ 4: 50
Entry point for desired risk reward of 3:1-7704

Potential loss(risk):  £5
Trade size (£ per point) :£1

Comment:
Trade was closed out early for A 5o point profit because i had commitments for the rest of the week.

Verdict: loot

Trade 6

While looking at the charts i noticed that GBP/JPY was performing better than EUR/JPY and i placed an impulse trade on it at £1 a point.This is one of the problems i have when trading,although i have looked at the signals and they look ok(maybe i am subconsciously trying to get rich quick).I have decided to leave the trade on and ride the trend.

Trade direction: Long
Stop loss:13105
Target price for exit:13252

Potential loss(risk):  £50

Actual Entry point: 13155
Trade size (£ per point) :£1
Target profit: 100pips

Verdict : No Loot