About my blog’s categories

So far this blog has five categories:

• About blogging. Little notes about how I manage this blog. I have used this category for the first time when I changed the theme of my WordPress blog.
• Forex technical analysis. This kind of post is my favourite. I analyse the market with very simple tools: mainly support and resistance (which I draw by myself) and candlestick patterns. My trading idea is to keep all the trading stuff as simple as possible.
• Forex trader life. Posts about events of my life which can impact my blog’s writing, such as the one I’ve written when I went on holiday for ten days.
• Forex trading plan. I write this kind of post when I open or when I close a trade. I try to explain why I open or close a trading position.
• Traders psychology. Fear and greed (and other emotions) affect negatively traders. I write this kind of post when I’m overwhelmed by my feelings. Sometimes I’ve even suicidal thoughts…

19 September 2014 – EUR/AUD – I’ve doubled my short position …

Last 16 September the EUR/AUD tested the down trend line. I thought the price movement was a false penetration.

Today the currency pair has closed above the down trend line with a long-legged doji (which is a outside bar too). A sign of  indecision. Technically the trend line is now pierced, but the price movement hasn’t still violated the static resistance. Coherently with my trading idea (that I quote:”I sell at resistance and buy at support”), today I’ve doubled my short position in the EUR/AUD currency pair. In other words, on 16 September I sold the dynamic resistance (the down trend channel), today I’ve sold the static resistance. Suicidal trading …

10 August 2014 – EUR/CHF – A flat market and a nice pin bar on a support

I’ve opened a new long position. I think my decision is line with my trading idea:

• The market is flat;
• the currency pair is on a significant support;
• the last daily candle is a pin bar (hammer), whose lower tail has pierced the first static support.

Stop loss: a daily close under the pin bar’s low. Take profit: the latest relative high.

6 August 2014 – EUR/USD – Why I never use a (automatic) stop loss

Daily EUR/USD candlestick chart. In line with my trading idea, I never use a (automatic) stop loss. Regarding the long position that I’ve opened at 1,34296 in the EUR/USD, I’ve set in my mind the (manual) stop loss at 1,33660. Today the EUR/USD has formed a nice pin bar (daily low at 1,33321), that it a reversal pattern too. If I had placed an (automatic) stop loss at 1,33660, the stop would have been executed. But I’m waiting for a daily close under 1,33660 to manually exit my EUR/USD long position in the forex market.

This choice protect my position from false breaks, but of course there is a price to pay: if the market closes under my (manual) stop loss, I endure a huge loss.

When I’ve opened this position I knew it would be a risky one, but for the moment I’m still holding my EUR/USD long position. Whathever happens, I’m a happy trader: I’m trading with a demo account …

How I’ve placed stop loss and take profit in my last two entries

Regarding the long position that I’ve opened at 1,34296 in the EUR/USD (see picture above), I’ve set the stop loss at the most recent lower low (1,33660). In line with my trading idea, I’m not talking about an automatic order. If the EUR/USD daily candle closes below 1,33660, I close the position. Period. Manually. I’ve set the take profit at 1,34765 because I expect at least a back test of the static resistance, but I acknowledge that it’s a very risky entry.

Regarding the long position that I’ve opened at 1,4654 in the EUR/CAD (see picture above), I’ve set the stop loss at the most recent lower low (1,4416). In line with my trading idea, I’m not talking about an automatic order too. If the EUR/CAD daily candle closes below 1,4416, I manually close the position. I haven’t set any take profit, because I expect a wide retracement.