Trade no1(GBP/USD)

I needed a  trading journal to record and document my forex tradings so I though why not use this wordpress since it is available

Well, I’ve been trading the foreign exchange on a live account for about close to about 1 month now and prior to that I had done my fair share of reading up books, resources, back testing strategies on demo account.  Anyway I will be using a demo account which the simulate in real time the forex market and the only difference from a live account is that the money is fake or known as virtual money.

Indicators used:

Stochastic(14,3,3)

MACD divergence(6,13,9)

Bollinger Band

Moving averages(18,9)

Risk/Reward:

Take profit at 350 pips

Stop loss at 100 pips(move to break even when trade is in favor)

Strategy:

At 1140hr I was scrolling through the four major currency pair and I saw a nice set up on the GBP/USD which looked quite good.

1-GBP/USD pair has been bouncing off the bollinger band for some time and had broke out at 1000hr.

2-9MA has cut below the 18MA signaling a change in direction at 1115hr

3-MACD had dropped below -0.00050

4-Stochastic was at 4.6

All four signals shows a strong sell signal and I made a sell trade  of 0.01 lot at 1156hr for 1.51529

At 1245hr I check my trade and it had already dropped to 1.51300 pips and I had a profit of $22.90 USD

Point to note, A minor rally to  1.51487 happened around 1230hr, those who had panic and closed the trade would had just broke even.

Despite the minor rally I held on and prices dipped to 28.8USD.

I took profit at 1308hr at 1.51197 pips making a final profit of  $33.2 USD

Okay so this is more or less my current trade rules.  Some may say that this is just small profit but take note this trade took me just 1 hour and by just by scrolling through currency pairs that fit my rules. I am trading 0.1(10k) lots so every pips= 1USD, 330 pips here made me 33 USD. This is the minimum and smallest bet allowed for my platform, if you are able to take more risk, for example buying 0.2(20K) lots you would have made double or 66 USD. Your loss would have been doubled as well. HAHA!

What have I learnt from this trade?

1-Trust your strategies.

My strategy took me alot of time to fine tune and backtest. I had four  good signals from my indicators to sell so when a minor rally happened I was sure It was just hitting a lower high. If that failed a stop loss to minimise loss was already in place.