EURJPY Going Up?
As you can see, EURJPY has been in a little bit of a downtrend for a while on the 4 hour and hourly chart, moving from a daily resistance down to a daily support. Bouncing off that daily support level (purple zones) with some stochastic divergence leads me to think this pair could be moving right on back up, hopefully to it’s daily resistance level. I’m willing to take a trade on this come Sunday evening.
Where Have You Been?
Long time folks…
I got busy after I had a couple of weeks off work and made the “New American Dream” video. Was trading equities and ETNs and such and was getting slaughtered not following my trading plan. I actually made some money as the market rolled over and dropped hard and would have made twice as much had I held for the whole move but alas…something you eventually learn as a trader is you don’t capture large, whole move like that very often.
So I sat on the sidelines for a bit and decided to expand my horizons and learn from FX traders. I had never traded FX and never intended to. Then I learned I could leverage a small account with acceptable risk and there’s no PDT rule and I was like…GAME. ON.
So I watched some Forex trading youtube and started a couple of demo accounts. I did really well really quickly, using basic support and resistance price action zone trading. I had a default $100k MT4 demo account and I traded it as if I only had $500 and grew the account by over $200 in 2 days!
The second demo account I opened with Oanda at $500 demo. I used TradingView to chart and execute trades and I over-traded because it’s so easy to do that when your charting and execution are on the same platform. I promptly lost over $200 on that demo account but guess what? I recovered half of that with a near-perfect trade overnight, catching the bottom of AUDUSD on March 18th. The next day I brought the account back up to $500 and thereafter to about $530.
I set that account aside and started a LIVE account with tradersway.com. I was in the process of opening an account with Oanda but something’s going on there and my account application is stuck in limbo it seems.
I funded my tradersway account with a cool $100 to dip my toes in FX for real this week. Off to a pretty good start but I still have a habit over trading! I’m up to $108 this week. 8% Account gain in a week? Pretty good! I started the week with a bang, banking $10 on my first trade. I made a mistake there too though. I got the trade very right, but I was overleveraged. I executed a .05 lot sell order when I should not trade over a .01 lot for this account size. The rest of the week was up and down as I lost some, won some, and clawed my way back to hold on to most of that first win.
So yeah, with all the uncertainty in equities (even though I longed some SQ), I’ve devoted my attention to FX. I work for a living, so being able to place trades in the evenings and mornings, EST, is very nice. Coupled with the lack of PDT rules, I worry less about being locked into a position I can’t get out of. I’m also trading a lot simpler, relying less on indicators and busy moving averages and more on price action. I think that’s for the better but we’ll see!