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EURUSD News play

November 27, 2013 at 1:27 pm
Trading 2 units with P1 = 20 pips and P2 = trailing stop or end of day

EURUSD Sell Stop 1.3578 SL 1.3612 P1= 1.3558
                 Buy Stop 1.3612 SL 1.3578 P1= 1.3632

USDCAD P1 is filled

November 27, 2013 at 12:52 pm
USDCAD P1 is filled. Moved SL to break even at 1.0566

Notice how the price just touched 1.0585 and immediately pulled back.

Nov. 27 morning

November 27, 2013 at 12:32 pm
There are important news for USD coming out at 8:30am and Corporate profits for CAD

USDCAD Buy 1.0566 SL 1.0536 P1= 1.0584 P2= 1.0594

EURUSD is not clear yet

Nov. 26 end of day

November 27, 2013 at 12:23 pm
USDJPY hit the stop at 101.63 for a total loss of 117 pips

How much capital is required to trade Forex part time?

November 26, 2013 at 10:07 pm
The minimum deposit amount and margin percentages vary between different brokers but much more important are your objectives and trading style.

For our particular case the reasoning is as follows:
1. All trades shown in this blog are based on some form of technical analysis.
2. Each order is accompanied by a Stop Loss order, which limits potential losses and makes them predictable.
3. On average, the stop loss order is located around 40 pips away from the entry price.
4. Each trade consists of at least 3 lots (these can be micro, mini or standard lots).

Therefore, the maximum risk per trade is 3 x 40 = 120 pips. If you traded in mini-lots that would roughly equal to risking $12 per trade.

Now, how many trades in a row can go sour? Well, much more than we would prefer, that’s for sure. If you risk 2% of your account per trade, than your total account size in our case should be $12 x 50 = $600.

The 2% seems to be the most common number in books on portfolio risk management. As a beginner, you would be better off risking not more than 1% per trade. Once you know your average win/loss ratios, you will be better equipped to figure out your risks.

In any case, you should always remember that your trading capital is a very high risk investment meaning that there is a high probability of losing all of it. Therefore, the size of your trading account should be such that even if you lost it all, it would not affect your living style.

November 26, 2013 at 6:11 pm
USDJPY Sell 101.27 SL 101.67 P1= 101.12 P2= 100.97

Market is not moving today. Cancelled all orders for the time being.

November 26, 2013 at 3:35 pm

Cancel EURUSD sell order

November 26, 2013 at 3:03 pm

One more order

November 26, 2013 at 1:18 pm
EURUSD Buy 1.3556 SL 1.3529 P1= 1.3573 P2= 1.3586

EURUSD Sell 1.3516 SL 1.3556 P1= 1.3502 P2= 1.3496

Nov. 26 morning

November 26, 2013 at 12:52 pm
All information and buy and sell orders provided here are for educational purposes only and should not be considered specific investment advice.

USDJPY Sell 101.27 SL 101.66 P1= 101.07 P2= 100.93
USDJPY Buy 101.66 SL 101.27 P1= 101.86 P2= 101.96

USDCAD Sell 1.0519 SL 1.0562 P1= 1.0504 P2= 1.0490