Friday came (almost) to an end and it proved to be another wild run. Not just in Forex; stocks basically recovered all of yesterday’s losses. It is truly amazing, behavior of the markets. It shows you just how confused participants are. This applies to everybody, small retail trader, trading institutions, market makers and everybody in between. I was done trading very early for Friday. Skipped the US session and went for a walk. Bought USA Today. I read very rarely, but there was something that caught my attention. Long article about just how strangely all markets are behaving. There was a comparison of many investment vehicles, like stocks, commodities, real estate, developing markets and so on. Focus was on how just about everything is loosing value at the same time. It was called unprecedented, with all experts mentioned there expressing their confusion about current situation.
Trade I planned yesterday, long GBP-CHF worked out as planned.
Entry was at 1,8200 with a target of 1.8300. Turned out to be good trade, making 100 pips.
Short term trades in GBP-JPY were productive as well.
I only took 2 trades. First one started to pull back before it reached my 100 pip objective, so I jumped it for a gain of 58 pips. Second one was much better, gaining 100 pips very fast. I decided to call it a day, close the week on high note, and didn’t take any more discretionary trades. That’s why I was done early.
Vast majority of the trades I post here are simple breakouts. They probably work better now than most complex strategies, with markets moving in crazy patterns. Just because the are not sexy, the latest fad or nobody pushes fancy software based on them, doesn’t mean they can’t be effective.
Mike K.
You post a lot winning trades. I mean, percentage of positive trades is high. Perhaps you should start signal service. what do you think?
Thank your for vote of confidence. At this time I don’t have plans of starting a service to cOver this type of trades. Time commitment would be too taxing on me. It might change in the future. You never know.
Hi Mike. Some of the charts you post show Moving averages. Do you trade them. I developed a M/A based strategy, but don’t know if I should trade it. There are so many opinions about moving averages, all conflicting. Some people claim they work, others that it is waste of time and money. What do you think?
Hello everybody! I trade stocks, not Forex, at least I’m trying to. Somebody suggested this blog to me couple of weeks ago and I’m not dissapointed. Do you think this kind of trading, like you do here, can apply to stocks?
Michelle, for the most part i use MA’s as a supporting factor, not a signal. Yes, they can be effective, but you must be selective about which trades you take. If you take all consecutive crosses, it will be a loosing strategy. By adding a filter of some kind you will greatly increase probability of success.
Renata, thank you for visiting my blog. Simple breakouts used here can be employed on any financial instrument. It takes some practice, just like any other discretionary trading.
Can you give your email? There is something else I’d like to ask you.
My strategy are based on 3 exponential moving averages.
One is a long one, which dictates direction. Two short ones give buy or sell signals. When both of them are above the long term MA, I only take buy trades. Opposite for shorting. Is this what you mean by “filter”?
My email is mike@fxmadness.com
Yes, Michelle. This is exactly what I mean by filter. Hope it works for you.