Stop Out Kill My Trading Account

Newbie most common mistake (I'm a forex newbie) kill my trade today. My USDJPY trade blow my trading account in one week, which make me feel so weak. I don't want it to end up like this but my catastrophic desire to make it big very quickly end up with Stop Out (SO).

Trading account balance is no longer enough to support any trade, which mean, I have to reload my trading account again. I hate to do this but I have to do it or there will be no more trade. The big mistake is failure of setting the trade scale.

Usually, I start it small, and make it bigger as my account is growing. But this time, I'm so confident that USDJPY will move downward that I've short another big trade for this pair. Unfortunately, that action leave my account with no room to survive from the opposite movement of 61 pips, what a shame! I lost the trade because I fail to handle these 61 pips!

So, I've set a new trading rule. The rule is to provide at least 200 pips of movement to the other side for a single trading account, or else ... there will be no more trade. This lesson is hard, but I have to obey this, if I want to make it.

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Hunting For GBPUSD

Position for USDJPY is still floating in profits.
Now, GBPUSD is open for a nice entry to short
down the pair on 4H chart. In long term, this
pair is moving upward. The main idea is to trade
this pair in short term mode. However, GBPUSD
is a dangerous pair when it come into volatility.

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Trade Updates

My short position for USDJPY is floating steadily with profits. At this point, it was very clear that USDJPY is going down on daily chart. I was thinking of taking another position into the trade. This time, I was thinking of scaling the trade. I was expecting USDJPY to keep the bearish movement until next week.

Meanwhile, EURUSD was moving down like a falling rain. Someone must have put the magnet down there. This is an excellent opportunity to gain some pips while the pair is moving down.

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USDJPY Trade Idea

According to Pick of the Day USDJPY will move down because the rising trend line on daily time frame is breaking. So, the trade idea is to short the pair at 91.00 and take profits at 85.00, but stop at 93.00 if the pair is moving up. This is a long term trade idea, so it will take more than a week to let the trade float.

However, I short USDJPY at 91.35 because my technical analysis indicate a strong sell situation for this pair on daily chart. Unfortunately, USDJPY is moving up moderately. Another short position was traded at 91.91 because this is the reversal point for a bearish movement of USDJPY.

Fundamentally, if USDJPY is moving upward, Japanese Yen is getting weaker and US currency is getting stronger. So, USDJPY will move down because Japanese Yen is getting stronger against US dollar. US dollar is getting weaker due to the increasing debt.

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Wild Volatility

Last time I mention about my dangerous position in forex market. I was thinking of losing the trade when volatility set the market up. However, I was wrong when I think I'll lose the trade, because the market went up just on the line. Stop out signal was very close to hit my account. I don't want to see the bad scene, so I quit my MT4 software.

Few hours later, I check it again. To my surprise, I've hit the green pips. So, my account can breath again. I continue to grow my account until I hit the break-even point, and start making pure profits on the go. During NFP, I've hit another big move when I trade gbp/usd and eur/usd pair. I set the trade upward, and market is going so wild. NFP report is very dangerous but profitable.

So, there I go with the first week of trading forex with FXOpen.

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New Year Forex Trading

This year, 2010 my forex investment is getting too bad. No words can explain how bad it is. No one ever trade forex this bad. Extremely bad, worse performance ever known so far. I just don't know what's wrong. What actually happen to forex market, or am I wrong?

Now, I don't care. Maybe I've play this game very carefully, that's why I lost it. I have a demo account to control my trading strategy, and it work so well. I don't really care for it, and let it move by itself, and it did a very good job. I just wonder, should I play forex like that?

So, I've decide to play it like the market does. I'm tired of watching the market movement and doing the technical analysis. Really tired, so tired. Now, I need to play forex like a game. Focus on two pairs only. Actually, by the time I write this, GBP/USD really want to make a bullish move, but somehow something is trying to stop it. It's was very confusing. So, I set the bullish trade into the market. We'll see what happen soon.

I make decision based on my technical indicators. Some common sense and emotional element do involve in this thing. I'll write later, whether I'm good or not.

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