A Forex Trader's Journal

S

sKaLpZ

I can have more than one journal, right?

This is where I'll go in the extra 10 to 15 minutes I have each day, to reflect on the forex market, global events and some of my currency trades.

Before I start, let me tell you about the new food-combining diet I am on.

I mix air and food in a 10:1 ratio.

*takes another deep breath of air*

So far it's working pretty good.

The Coin
 
There are two currency pairs that I'm most interested in lately.

They have special features that no other majors have.

Examples will be in buy orders at 50:1 margin. EUR/USD will be used for comparison only.

The high/low range for EUR/USD for one year is 1735-pips

NZD/USD high/low for one year is 1400-pts.

GBP/USD is over 1840-tics making it the biggest mover of the majors.

But check this out...

For $1,000 you can buy 27352 units of GBP/USD.

Same $1000 gets you 39818 units of EUR/USD.

But watch what happens when you buy $1000 worth of NZD/USD: You get a whopping 70422 units!

In each pair a pip is worth the same, $10 (for a full lot - 100,000 units) and $1 (for a mini-lot - 10,000 units).

So, GBP/USD ("cable") is by far the most expense pair per dollar, NZD/USD being the cheapest pair of the three.

Here's another feature.

Say you have a $10,000 account size.

You buy 39818 units of EUR/USD and hold it for one-year (at current interest rates). At the end of one year your $10,000 account is now worth $9425.

Same deal with GBP/USD however your account is worth $10,774.86.

Wait a minute, let's now look what NZD/USD gives you for your trouble.

At the end of the year your account is worth $11,750.

And in each case all you would have done is buy and hold. No additional trading.

Anyway, I thought that was noteworthy.

Saham
 
sKaLpZ

Your a talented writer and a good read.

When your making money, its a good feeling isn't it? I find its harder to deal with the emotions of winning, then the chase is, to get profitable....

Michael B.
 
OK, boys and girls, would a forex trader's journal be complete without a live currency-trading competition?

No! :D

Therefore, we're gunna have one right now right here.

Contest rules:

- you can enter at any time but you must commit to finish.

- use a demo only (no live trading) and use your Elite Trader ID on the platform for verification sake.

- post snapshots when you update us on your progress. this will show everyone your actual trades.

- update about once a week or twice a month.

- contest lasts to December 01, 2005.

- is open to all.

- the winner will be voted on, using the BEST trading system, not just picked based on highest ending balance.

- the goal is to try to beat the forex market, not necessarily each other.

- please discuss at least some of your methods and tactics.

- even if you never traded money before you can enter and trade along side some the best fx traders in the world. great way to learn.

- ask questions! :D

I'll be posting my first trade snapshot soon.

Good luck to all competitorz.

sKaLpZ
 
The weapons I'm choosing (for now) are:

EUR/USD - Short.
AUD/USD - Long.
USD/JPY - Long.
GBP/JPY - Long.
GBP/USD - Long.

My initial approach is light-aggressive, to see which way the wind blows. The opening trades are ultalight unit-wise.

This demo is pre-set at 20:1 margin.

Hopefully the market will work with me and drop me into a slippery deep hole. That's my initial goal anyway.

Then I'll do a few other maneuvers once down there.

If not, I'll take profits where I can.

I'm hedged on the USD a little too.

Some of the strategies I'm using are ones I use on my actual live trading account.

theskalper


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Thanks for the PM inviting me to your Journal and to participate, sKaLpZy :)

I do not have a lot of time so here are my trades and my spreadsheet with the trading rules...Just deduct $93.59 from the totals. I am posting my real trades and have started before your Journal.

My system is not glamorous and I spend about 6 minutes per day trading it. I will post my spreadsheet here as I get time.

You know sKaLpZy, trading is not about war , hell or competition as you have ranted. Some of us prefer to look at trading differently. That is what makes trading work, and different strokes for different folks.

Good Trading to you...


Michael B.
 

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