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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