FOC meeting

The trade did not go as planned. After dovish comments from the FOC release and the decision not to raise interest rates the value of USD/CAD plummeted.

Aftermath of BOC interest

Summary of Yesterday USD/CAD trade.

Long@1.32406 TP 1.33098 SL 1.31359

The trading yesterday went if nothing else well. We traded USD/CAD and the trade did not go in our favor in the first few minutes but our stop loss was not hit saving us from a large loss. It met support at around 1.31547.  It slowly crawled its way back up to hire then before the interest rate decision announcement.

I've decided to keep the trade open and look for a higher level of resistance in which to close the trade. A local level of resistance from an august 25th high can be found at around 1.3352-1.3405.  If this level is broken and the day closes above it we are looking at the next level of technical resistance at 1.3584


The USD/CAD will continue to be bullish until the US interest rate decision at which point if US increases interest rates it will go up if they stay the same it will drop back down. Trading the USD/CAD is a high risk trade as the Canadian dollar is closely related to commodity prices. With the recent volatility in oil this can add to the unpredictability of the pair.

What was so surprising yesterday was how fast the trade moved after the rate decision. How quickly it dropped was pretty amazing to see. That's why it is important as a low Capital trader to out for the high capital traders. Where they move the market moves typically.

Overall USD/CAD is slightly bullish until the upcoming FOC meeting

USD/CAD BOC Interest Rate

High priority today is the Bank of Canada interest rate decision. I will be going long on USD/CAD and bought in this morning @ 1.32402 with stop loss set to 1.31359 and Take profit at 1.33098.
 This is a critical. Rates come out in about 7 minutes so we will see where is goes.


Its tough working full time and trading, you really need to be able to focus if you are going to trade forex.


UPDATE* After the initial release of information on the interest rates, USD/CAD saw a rapid drop in value with a moderate recover following the few hours after. The Stop loss was not triggered.

How ironic trading can be

What an ironic day of trading. With so many up swings and down swings on Labor Day. Beginning with trading USD/CAD the night previous things did not go quite as planned. Upon market opening the previous night the trade was lost due to setting a stop loss of 10 PIPS and a take profit of 10 PIPS. This can be dangerous as I found because it does not take much for the price to move 10 PIPS up and 10 PIPs down. The trade closed out and I lost that amount.
 

Yesterday my problems were beyond this. I traded fairly wildly, looking for opportunities and possible trends while really ignoring the fundamentals and technical. I Recollected all but .3% of my losses.






After getting home from the family labor day gathering I began to trade in the evening during the first hours of trading. Attempting to trade a variety of pairs using price movements and possible up or down trends. I closed out all of them as they began to move against me except USD/JPY which I had shorted. This brought my losses to 2.2% of my starting balance. I let my Yen trade ride out throughout the evening and night setting my risk reward at 1 to 2. I woke this morning to find ironically that my balance was 0% gain 0% losses.




The Take profit struck and I regained my lost 2.2%.  I guess it's better to be at 0% lost and 0% gained to have lost. The great thing is if I had stuck with my plans can only trade in a certain amount of my goods and really looked into what I was training I would not have had that problem.

Remember when trading commodity currencies provide yourself a little extra leeway with stop loss and take profit due to the wild up and down swings in currencies such as the NZD and AUD. Yesterday I sent some conservative trades into the AUD/USD and was surprised when what seemed like a clear downtrend reversed and suddenly jumped up to close out my stop loss only to  three minutes later drop down to what would have been my profit line and beyond...

It's an exciting thing to be trading live. A little nerve wracking but with proper controls and strategy  things can be maintained.

Happy trading and good luck.




Stay focused and stick to the plan. Do not let ego get in the way. Always get 1% better each day.

1st set of Trades

Last night I set my first trade. I lost 1% plus and addition .1% due to a trading error while adjusting the stop Take profit and Stop loss. It is imperative that you use these tools and use them correctly while trading. I entered the trade Long USD/CAD with a market purchase@ 1.32747 my Stop loss was set to gain 3% while my Stop loss was set at 1.32490. During the night there was high volatility and my Stop loss was hit. This morning USD/CAD I bought again Long @1.32865.

My  Big mistake is setting the SL too conservative while aiming too high for the TP. The Stop Loss is an order to close a trade at a specific price to reduce losses. The Take Profit is an order to close a trade a specific price to make profit.

A great rule to follow is to use the Risk Reward Ratio. In essence if a person risks 10 dollars a share and expects to make 20 dollars, the risk reward ration is 1:2. 1 unit of risk for 2 Units of reward

For example is you expect to gain 100 Pips from a trade , set a SL of 50 pips and a TP at 100 pips Your risk reward is now 1:2.

 Higher ratios can be used but beware of volatility. With the wild up and down swings that occur in Forex a trade that is too conservative may close out before fully coming to fruition. Keep calm and trade on.

Losses happen in Forex. It is estimated that Traders are correct in their trades 50% of the time, the number may actually be closer to 30% .Here is a link  to the article  about why people loose money and how to avoid it  on DailyFX. In summary people in many cases do not cut their losses. They try to hold on and get that winning trade even when it goes wildly against them. This is one of the aspects you must overcome while trading. Be humble, pop smoke and get out of their if it goes way against you. Do not let losses run and do not cut profits short. Do the opposite.

Happy Trading

Trade is still open today. We will see where we end up. The US Market opens in 20 Minutes. Good Luck.

1st Deposit

I have just deposited my first real funds into the FX market. What an exciting prospect. I have been using practice accounts for the past 2 years and finally have jumped in live. It is nerve racking. Even with only $10.

It was surprisingly easy. Instantaneous even. I wanted to use Paypal but some new rules do not allow this so I used a debit card.

My Weekly plan is as follows. Continue to use new data to update plans. Trade volatility on USD/CAD. Short USD/JPY and possibly AUD/USD. I believe that USD/CAD will raise meet resistance and drop down. As it has been the past few days. it will continue this trend until the FED meeting in mid September. Any Thoughts?

Of course things may change, I have not yet started trading. I will be at a labor day celebration tomorrow and was with Family today. We all need to live our lives.

Happy Trading.

In addition a great place to design and work with people on charts is Tradingview.com I quickly put together the above chart after doing some reading and making plans. I am still getting used to all the tools but honestly its very in depth and fun to use. You can share your ideas with others, Comment on theirs and chat about live events.

If anyone wants to talk on there my User name is Ztrader90

Day 1- The Plan

Today I have 10 dollars and in five years I will be a millionaire. I just recently celebrated my 25th birthday. 1/4 of a century old. Everyone says it is an accomplishment and I guess it is. I am now a man and supposedly my brain is fully matured. At least the part to resist stupid impulses. What does it really mean to be fully matured though?

Okay, back to the point of the blog. 1 Percent a day. What does this mean? It means that if you take what you have today and get a 1 percent return on it each day on an investment then tomorrow you will have 1% more than you had today. This can be applied any where. Huge rewards are not consistent and you will never get better at something  instantly. You have to work at it and slowly get better...

Today I will go running,  and be sightly better at it than I was yesterday.

How will I become a millionaire? That is a question of leverage, risk and great rewards. The answer, with ten dollars and a return of just 1 percent a day for the next 5 years.

Trading 240 days a year on the Forex market gaining an average of 1 percent a day to be more precise.

What is Forex? Forex is foreign exchange. The foreign exchange market is the largest and most liquid trading market in the world. It is decentralized and its primary participants are large financial institutions. Any one can trade though. The high liquidity and volatility makes it a dangerous investment but with care; the risk can be managed and the rewards can be great.

The strategy is to prepare a weekly trade plan based on current market forces with the right to change this plan as new information becomes available reserved. In addition  only risk at most 33% of funds at a time further breaking that into 33% increments which is used to buy lots. I will begin trading this week once I deposit $10 to Oanda.com. I may change brokers at some point during this experiment.

Always work to better yourself.

10 Dollars. 1% Day 1 =10.1 Day 2 =10.201

$10 Dollars. 1% per day. Year 1 = $108.93

$10 Dollars. 1% per day. Year 2 = $1,186.48

$10 Dollars. 1% per day. Year 3 = $12,923.77

$10 Dollars. 1% per day. Year 4 = $140,772.83

$10 Dollars. 1% per day. Year 5 = $1,533,375.57

We can do this.