Week 6 – Forex Trading Review

Every weekend I tried to spend the time reviewing all my closed trades and understand where I might have gone wrong or right in some circumstances. The majority of the week is spent making sure that I have made the right trade following my trading plan. There have been a few times where I have jumped the gun on some trades and the weeks before have seen me trading with the wrong indicator.

This is why you need to make sure you review all your trades. Take the time out to understand what happened in the markets and decide if there is a better way to tweak your strategy.  Ok! time to look at the trades over the last 7 days

CAD/CHF

Date of trade: 29/01/2019

Long @ 0.74949 – WIN

CADCHF - review

There is not much to say about this trade other than “GREEEEAAAT”. I have highlighted my point of entry into the market. As you can see, the sentiment was on my side, trend strength was positive, and there was a good amount of volume on the day. These are the moment where you should not be hesitating. Make sure all the indicators corresponds to the direction and know your risk. 👏

AUD/USD

Date of trade: 30/1/2019

Long @ 0.74949 – LOSS

AUDUSD - review

With this trade I will be honest, it ticked all the boxes. Strong sentiment, but we could say the sentiment was changing. The trend direction was healthy for an uptrend as well. Clearly, there was enough volume in the market for this trade. It started moving sideways which had me thinking whether there was a way to predict this using a tweak to the trading plan. If you have not noticed, I have placed the Ichimoku cloud on my charts to see if this would improve the accuracy of my trades. From my understanding of the Ichimoku cloud, I should not be trading while the price is within the cloud. On this instance, the price is not in the cloud, but it is at the level as the cloud (to the left). If you know how I trade, then you will see that I do not use support and resistance. At this point, I am leaning towards S/R where the peak of the cloud is support or resistance. My learning curve and strategy has kept things simple but maybe a little too simple. The belief is that this trade could have been avoided if I had not entered the market while the price was at the same level as the cloud to the left. Do I want to move forward with incorporating this into my trading strategy?

I am going to say not yet, but I will keep it in mind when doing my final month review and will also continue to look at the option while I am doing these weekly reviews.

GBP/NZD

Date of Trade: 05/02/2019

short @ 1.87858 – LOSS

🤦🏾‍♂️ I thought this was a stupid trade, but no trade is stupid in the forex world. What was wrong with this trade is that I did not 100% stick to my trading strategy. The sentiment is still on the bearish side which meant that one of my indicators was telling me that you can not make a trade. Me being me I tried to predict the future looking back at the past and understanding that ever time the sentiment got that low it would change. BANG! Not this time and it was a good lesson to learn while there is no money on the line. You can also see that we are not out of the cloud which is a second indication not to trade. At the time I never had the cloud on my charts, but I am leaning towards using it.

GBPNZD - review

🧘🏾‍♂️ As traders, we are not here to try and predict the future. If you want to be a fortune teller, then you are in the wrong business. Forex is controlled by major banks, and that is a fact. The more you continue to think you can predict the price, the more your emotions can affect you when the price does not move in the direction you want it to.

Be happy that you will never see me draw a line which corresponds to a stupid forecast of a potential direction or possible movement of the market. My strategy is to use good indicators to understand what price is doing or could do. It is these indicators which will tell me when it is safe to trade and not where price will be in 24hrs time.

Remember you can follow me @

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Go check out the Pineapple Chicken blog to understand why you should get away from the charts and experience the wonders of the world. Personally, I take the charts with me, and my girlfriend over still loves me for it 🤣

DISCLAIMER: I am not a professional trader and have a long way to go before I call myself a pro. This is not financial advice, and you should do your own research before trading or look at my positions. All trades are currently made in a demo account.

 

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