dingo.forex

Sorry for lack of updates again. It's just been busy here in the sandbox, getting back into the swing of things. Forex research among my group continues, though. We've each knocked out about 2 or 3 books in the past 2 weeks. Books include The Logical Trader, Trade Your Way To Financial Freedom and Forex Revolution. All three I would highly recommend, although Forex Revolution is a bit newbie-friendly, but it's still one of the most current Forex books available. We're currently testing the FX10 strategy in our spare time. Specifications are as follows:

• 5 period WMA
• 10 period SMA
• Slow Stochastic (5,3,3)
• RSI (14)
  
• MACD (default)

So far results on this system are very good. It generates a ton of signals and is producing roughly an 80% success rate. For more information check out http://www.tradecurrency.ca

Other than that, still working on developing a good system to trade live with when I get home in 5 months. So far it looks like a strategy in the way of scalping and short term trades will fit best. I've been reading the blogs and it seems most guys have been making great gains these past few week. I'd also like to congratulate Graemenash on his best month in Forex trading. Up 2037 pips for July I believe. Spectacular results man. Also great to see Hilda performing well. Happy trading guys. It won't be so long before the next post, I swear. ;) Cheers.

Thanks for all the encouragement guys. I'm back in Iraq now, and I'll be counting down the next 5 months until I can get home and get my trading account started up. Until that time I'll be trading when possible with my limited time frame under a demo account. Otherwise I'll be using my time here to brush up on some forex reading. It may be a few days before I get back into a routine here, so my posts my be stretched a bit thin for the next week or so. So I apologize in advance for a lack of content during this period. But in the meantime I wish everyone happy trading. Cheers.

Well it's that time. I've been at home on leave from Iraq since I started this blog and now I'm headed back to finish my final 6 months (or so) of deployment. I won't be able to update for the next few days as I will be in transit. But rest assured when I get the opportunity I will be updating the blog. Wish me luck on my return trip.

Well the past couple days has been more learning and researching. Very little trading. I'm trying to work out a strategy to fit my timeframe. Taking the time to learn some of my basic indicators in depth, and also researching some strategies employed by others. Currently I'm looking at BunnyGirl's calping strategy and the 4 Hour Momentum Tunnel Method. Hopefully I'll have some success with these. They look good in theory....wouldn't it be nice if theory was a place? I'd love to live in Theory. ;)

Well the market is closed, bummer. I go into withdrawl after every Friday. Well with no trading today there will be no trading news obviously. Did some more research on Ruby though. Came across a great video on how to build a blogging engine through Ruby. How ironic. Maybe I'll have to ditch Blogspot eventually. Here's the link to the video. Very cool.

Still hammering away at the books. Currently reading "Trade Your Way to Financial Freedom" by Van Tharpe. Excellent book so far. You never really consider the psychological aspects of trading until you put your own money on the line. You have to experience those emotions of fear and greed for yourself. Also, I'm looking into purchasing "The Logical Trader" by Mark Fisher. Has anyone read this? I'd like to get familiar with the ACD Method and I guess this book will be the required reading for that. Anyways I'm curious if this book is worth the money. Oh and here's a link for a free 1 year subscription to Futures Magazine. Oy! Time to go get some grub.

Taken from Hidden Divergence:

"One of the advantages of being a forex trader is working a home, so although I live near London I had no reason to be there! My girlfriend was on a train into London at the time but she's OK, holed up in a bomb-proof part of the building she works in.

Asking myself some moral questions about taking +40 on a GBP short though..."

Sad, I was thinking the same thing when considering to short the pound.

Also, being in Iraq I'm often left out of the loop when it comes to technology updates. But I just came across Ruby on Rails. A spectacular looking replacement for XML. If you're a web developer you definitely need to check this out. Definitely read the weblog section and download the tutorial videos. It looks really nice. Kudos to a company producing a recent language that actually looks good.

Yesterday went well. Three trades total. The first I made on the Yen and lost, at -2 pips. The second I tried my hand at the Yen again. Opened a position at 111.89 and closed out at 111.70. So I was +19 pips after that one. Finally I finished the day (and part of the night) with a position on the Euro. Got in at 1.1923 and got out at 1.1930. +7 pips on the Euro. So it's +24 pips for the day.

And finally, my sympathies go out to the victims in the recent London bombing. It's a terrible thing for a country to endure. I see British soldiers over here on an almost daily basis. I wish you all the best through these times. Information can be found here.

Alright, here's the results for the day. As I stated I made a good EUR sell for about 16pips. After that I had an open position on the Yen which was making me worry so when I hit 2 pips over my Sell price I got out. So +2 pips on the Yen. And then to polish off the day I ran an overnight sell on the EUR, got in at 1.1915 and got out at 1.1874. A very nice winner. As a total I made +59pips for the day. Just in case you're wondering, my leverage and position sizes on my $3,000 account brought me up roughly $1,000 for the day. My goal recently has been to apply the basic fundamental that you must know when to ride out your winners, but also be disciplined enough to cut your losses on the losers. I will try to avoid ever riding out a loser in hopes that it comes back up. It's a losing strategy that's wiped out many a people's trading accounts.

UPDATE: (2:3oPM EST) Chose to short the Euro. Got in at 1.1919 and closed my position at 1.1903 which puts me +16 pips for the day. I still have an open position on the Yen which is breaking even right now. Even if I hit my stop on that position I will still be positive for the day. So far so good.

EUR/USD
Trading range: 1.1940 - 1.1800
Trend: Downward
Sell at 1.1929 SL 1.1961 TP 1.1812
USD/JPY
Trading range: 111.40 - 112.45
Trend: Upward
Buy at 111.52 SL 110.53 TP 112.31
GBP/USD
Trading range: 1.7645 - 1.7600
Trend: Downward
Sell at 1.7635 SL 1.7667 TP 1.7611
USD/CHF
Trading range: 1.2970 - 1.3085
Trend: Upward
Buy at 1.2981 SL 1.2949 TP 1.3073

That's the expectations for the day from the analysts. Lets see if we can work some pips within those predictions. Also the rumor mill is predicting a downtrend on the british pound to continue on for quite some time. It may be a safe bet to sell with that trend for now.

The following books are reccommended reading by Merlin of ForexFactory:

Reminiscences of a Stock Operator
-- by Edwin Lefèvre; Paperback
Wheels of Fortune: The History of Speculation
-- by Charles R. Geisst; Hardcover
Market Wizards
-- by Jack D. Schwager; Paperback
The New Market Wizards
-- by Jack D. Schwager; Paperback
Trade Your Way to Financial Freedom
-- by Van K. Tharp; Hardcover
High Probability Trading
-- by Marcel Link; Hardcover
New Concepts in Technical Trading Systems
-- by J. Welles Wilder; Hardcover
Smarter Trading
-- by Perry Kaufman; Hardcover
Trading Systems and Methods
-- by Perry J. Kaufman; Hardcover
The Mathematics of Money Management
-- by Ralph Vince; Hardcover


*So far I've managed to purchase 4 of these books, unfortunately several of them are either out of print or not actively stocked at most book stores.

Alright folks, this is a Forex trading Blog. It may eventually expand to stocks and futures, but for now it's strictly Forex. I am currently serving my country in Iraq. Whilest I have been here I have discovered the incredible world of FOREX! So myself, along with my two good friends and future business partners will be embarking on a journey to learn, practice, and generally soak up as much knowledge as possible on Forex. Down the road you will see trade logs and daily endeavors posted here. until then, I'm not actually sure what you'll find here. Who knows, but I promise something. Enjoy!