Forex Trading Thoughts and....

It was an incredibly crazy session with four trades triggering almost simultaneously. All ran to profits. Very nice. It makes for a very nice weekend.

Dear God...this is the cruelest of all losses and the most frustrating from my point of view. The trade was entered short on USD/CHF at 1.0337 after the breakout and pullback of the Asian session low. Price went slightly in my favor then retraced to my stop to the pip. Price then changed direction and ran lower for what would have been a tidy profit. Not a big deal, just one trade in a very long series of trades. None the less, it's very frustrating to be so close to a nice runner yet be stopped out by one stinking pip. Ah well...next bus then?

This GBP/USD trade didn't work out. I followed my trading plan exactly and took the breakout low of the Asian session. Price moved lower initially and I was feeling pretty good that this trade would work out well. The market certainly had other ideas. I was fortunate to peel off 1/3 of my position at +8. Unfortunately, the other 2/3 of the position ran up to my stop for -21. This is the way it goes sometimes. You have to plan your trade and trade your plan. That's exactly what I did here. So even though the trade was a loss from a monetary point of view, it was a win from the point of view of sticking to your trade plan. Losses happen. They're a part of the business. To be fair, there are some extenuating circumstances that may have contributed to the poor financial out come of the trade. First off, Trichet from the Euro Central Bank(ECB) gave testimony during the trade. He's the top dog where the euro is concerned. His testimony can sometimes make the market unstable a

This session was not all that great though much better than a loss any day. The session begn by seeing most of the pairs I monitor already making moves by breaking out of their respective Asian ranges earlier than normal. The one that was in play was USD/CHF(US dollar vs Swiss Franc). I missed the break out of the Asian low at 1.0444 for some reason I can't recall now. Fortunately, it didn't run off too far before pulling back to create an entry opportunity. I set a sell limit for 1.0435 and was triggered into the trade shortly. The rest is annotated on the chart.

I've added and removed a few currencies from the line up of daily monitored pairs. The pairs I monitor as of today on a daily basis are EUR./JPY, GBP/JPY, GBP/USD, EUR/USD, USD/JPY, EUR/CHF, USD/CHF and GBP/CHF. Each day I start off by marking the previous day's high and low using a dashed horizontal line. I also set fib retracements on the daily charts along with nearby horizontal support and resistance levels from the same daily charts. The daily pivots are added by an indicator. Asian over night ranges are marked on the 15-min chart. The Asian range is defined from midnight GMT to 7:00am GMT. At this point I wait for a break out of the Asian range high or low, and jump on for the ride. They don't all work out, but enough of them do that it put the probabilities in my favor. That gives me the edge I need to profit from the market.

Though this trade worked out very well, I'm some what upset that I missed entries on two other trades that ran off very nicely: GBP/USD at 1.9690 and USD/CHF at 1.0390. Both were break out of the over night Asian range.

Apologies for not having posted in over a month. Trading has been going along quite well. These two trades were from Friday 06/20/2008. The trade above was a short of GBP/CHFon a break out of the over night Asian range. As you can see this trade ran quite well. The trade above was a short of USD/CHF on a break out of the Asian over night range. It too ran quite well for a total of +44 after price moved a bit shorter, then retraced.