Th., May 8 News Trades Results +103 pips
We got the opportunity to make a double profit on EURUSD today. As the price went up, we went long at 1.3956. Both price targets were reached for a total profit of +50 pips. The stop-loss order for the 3rd unit has been set at the break even price and it was hit later.
Then, the EURUSD price dropped and we went short at 1.3898. Both profit targets for the short position were reached and the 3rd unit has been closed as the price started to recover.
The actual signals for these trades are shown in the previous post.
The total profit for the EURUSD trade was +50+20+37+32 = +139 pips (see the chart below):
The GBPUSD price went up but not far and not for long. We closed this position with a small loss of -36 pips. See the signal to close and the chart below.
Wd., May 7
Today was another dull day in the market. There were no trades taken. Most currency pairs chalked up inside days on their charts as the market is waiting for important news releases tomorrow.
Why is low volatility in the forex markets bad for traders?
Answer by Dave Hughe:
Traders make money on price moves. They either buy low and sell high or sell high and buy low in the case of short selling. If there is no price move there is no money to be made. As simple as that.
The direction of the move is not important but it's imperative that there is a meaningful price move. Since no one can predict on a regular basis when the price is going to change, traders can capture only some part of the move. Therefore the move has to be wide enough for a trader to recognize the move, open a position and make a reasonable profit on that position before the direction of the move changes.
Trading non-volatile choppy markets is very difficult and requires a lot of patience and strict money management.
For y’all professional forex traders, what software do y’all use to trade on a imac running Mavericks? I have Fxcm online but I want a pr…
Answer by Dave Hughe:
I use Meta Trader 4 on my Mac and on my iPhone. There is a MT4 app for the iPhone, which works great. As for the Mac, you need a software that allows running windows programs on Mac. Personally, I use CrossOver (Run Windows on Mac, easily and affordably) but there are more good programs out there including free ones such as Wine Skins and Wine Bottler (Run Windows-based Programs on a Mac)
Tu., May 6 Trades
We did not trade on Monday because banks were on holidays in the UK and Japan
There were no short-term trades this morning. We opened a long position in AUDUSD on a daily chart at 0.9361. Which means that this particular trade we are going to follow on daily charts with placing stops and profit targets accordingly. The trade signal was as follows:
Fr., May 2 End of week results -144 pips (Total: +3,030 pips)
The up to date results since the start of this blog are as follows:
Week 1: +231 pips
Week 2: – 19 pips
Week 3: +415 pips
Week 4: +366 pips
Week 5: +137 pips
Week 6: +150 pips
Week 7: + 20 pips
Week 8: +155 pips
Week 9: + 23 pips
Week 10: – 149 pips
Week 11: +465 pips
Week 12: +126 pips
Week 13: + 50 pips
Week 14: +306 pips
Week 15: +201 pips
Week 16: + 11 pips
Week 17: +325 pips
Week 18: + 80 pips
Week 19: – 133 pips
Week 20: + 380 pips
Week 21: – 32 pips
Week 22: + 66 pips
Week 23: – 144 pips
Total: +3,030 pips
Fr., May 2 Trades results +72 pips.
The USD surrendered its gains today. We were able to profit on all 3 units in the EURUSD trade. The total profit there was +66 pips. See below:
In the GBPUSD trade the first unit reached its profit target for +22 pips profit. The remaining 2 units were stopped out a little bit above the entry price. In total this trade brought a small profit of +6 pips. Therefore the total profit today is +72 pips.