Forex Trading Journal: June 6th 2010

This is the 6th of June and so far this month I have only made one trade. I have been light on the trades but I want to make sure that I am taking the time to properly get the right setups and to properly record all of the trades made. So that everyone can see step by step how to follow a trading plan and execute each trade according to the rules. This is exciting to see how many traders are following along with this journal.

A recap of the trading journal this month so far:

Trade 1:

Short Eur/Usd Price 1.2179 Target 1.2250 SL 1.2147 Risk on trade 1% Result Loss – 33 pips Total For the month -33 pips.

Now we are going to try to make those pips up with this next trade, lets see if we can do that shall we? I recommend everyone following me on twitter so that you can receive these trades as soon as possible. If these posts have beneficial to you please tweet this post by clicking the Re tweet button at the top of the post. That way this forex trading journal will go out to as many people as possible and we can help teach many lost traders. Last trade was a loser and I identified 3 things that I could have done better in the last post. Then in the comments some wise members reminded me to watch news events prior to trades. So this time I will not repeat those 4 mistakes.

I also mentioned what was done right and I am going to continue to do the right thing and eliminate everything that was done the wrong way.

Now for the setup:

I earlier looked at the Gbp/Jpy and I am liking that trade short to an eventual target of 1.2700 There was an entry signal on a short with a 4 hr candle that broke to the downside and went through the downward trend line. I am not going to enter right away, I am hoping that we get a bounce to go up and test where the trend line was broken. If it does rebound that is a great opportunity to go short.
I am going to post this before I take the trade. When the trade happens I will send out a tweet and I will then update this page.

Look at the chart:

june 5 4hr

june 5 4hr

This chart below is what I am hoping the pair will do so that I can find an acceptable entry point.

june 6th 1 hr

1 hr chart

I have been monitoring this pair before the market open and right now the price is at 132.05 There was not much of a gap but the price began to move down immediately upon pre-market open. If the price moves higher we could have an excellent opportunity to enter short. I will not enter until we get a decent rebound. I would like to see the price move back up to around 1.3300.

This trade will be a bit different in the fact that instead of risking 1% I am going to double up and risk 2% with two positions on the trade. The first one will have a lesser target and the second position will have a long term target of 1.2700

On a side note I have been reading reports that the Euro is going to continue to go down in the next few weeks so we will be looking for some rebounds so that we can go short.

As always please continue to comment and tweet this post so that I can get some good feedback and that as many people as possible can learn. Your comments were so valuable to me in the last couple of weeks.

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Casey Stubbs is the founder of Winners Edge Trading, which is one of the most widely read forex sites on the web. Winners Edge Trading has trained thousands of people to trade the Forex markets.

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  • jasvinder

    Your analysis was perfect. It did go to 133.80. How do you do it? Will be grateful for the basis of your analysis. It will improve my trading.Thanks

  • Kb

    Thanks Casey. I think this is now the time to call the shorts on gbpjpy pair. Cheers!

  • David I know that this is not ideal for signals but the purpose of the journal is not for signals but rather to teach traders to log and analyze all of your trades as far as entry goes you will have to determine that according to your own trading plan.

  • Yannisch,

    I have never traded correlations So I can't comment on that. They are useful and some people do well with them I just am not one of them 🙂

    thanks for the comment.

  • I like to keep it short so I don't lose too much money 🙂

  • Thank you

  • Kb you were very close it went to 131.10 then back to 133.67 good job but I was still able to get pips on both shorts.

    Thanks

    casey

  • Thanks,

    It worked out well, it was just hard to update.

  • I am getting ready go in now at 834 est this is a new trade . I will be doing a full update within the hour

  • Helen as a good point, Do I go in now??????

  • helen

    Hi Casey – I missed your trade entry which was during the UK night – looking at the chart you will have presumably taken profit when it went down to 1.127 ? Since then it has gone back up and is currently around the 1.33 area where you were waiting for it to go originally. My question is – would that 1.3300 area be a good entry point now, or has the prior move down invalidated it? Is this now a whole new trade?

  • Yannis

    Dj30 is the barometer. If dj30 moves then everything moves. Also dj30 get very upset when crude oil running up too fast and is making corrections to keep the oil down. Gbpjpy is a very good runner. If i know when dj30 is going to swing then there i put my buy/sell positions. Though I'm a looser newbie. Thanks for your time to show us how to be successful traders.

  • Juan Tinorio

    nice trade casey…I'm sure your first TP will be touch in no time by now. but i have question for you, why you set your SL below 30 pips, how can you be so sure with your SL set? coz it's GJ, and it could run more than 30 pips just for the hickup.

  • I entered short at 1.3246 SL 132.72 TP1 131.oo Tp 2 127.00 at 5:35 Est

  • ad

    Loving yr work Casey!
    It help us all,
    Cheers, Ad (WA, Aus).

  • kb

    Hi, I appreciate your analysis. But from my analysis the gbpjpy is very likely to bounce back at around 131.40 to about 133.80 before it goes down to 128.00. So I think it its too early to call the shorts.

  • nisar

    Hi cassey,
    Great, i really like your analysis this time, patience as you say is a virtue. great work. now you are heading towards right direction and take us alongside to the right way.
    thanks