NOTE: This text heavily peddles the service of a particular fx training company. JPYforexfan is in no way related to them. In fact, I’d rather stick to quality free web-based learning aids.

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by Leslie vanWinkle

You can learn a lot about yourself on the road to making a profit. When I discovered foreign exchange trading five years ago, I thought it was the answer to my prayers. Retail forex trading could be done around the clock in an up, down, or sideways market with only a handful of currencies to monitor, as opposed to 5,000 common stocks on the exchanges. I didn’t realize I would be embarking on a journey that would stretch my intellect, flatten my emotions, test my resolve, force me to confront money management, and lead me revise many of my beliefs about myself. Since then, I have learned a great deal about forex and only now am I beginning to see a trader emerge. So read up and learn from my mistakes.

MONEY FOR NOTHING
I became interested in forex trading in 2005 after attending a workshop held by a group called FX Trainers. They began by showing trades that earned 40, 75, 100, and even 300 pips. When they multiplied those pips by lots, my jaw dropped at the potential. The presenters emphasized the use of technical over fundamental analysis in forex trading. I understood technical analysis from my Read the rest of this entry »

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I’ve been looking into using trailing stops lately. I think it’s a good way to protect profits. Of course, it’s not easy to determine the right distance from your entry point to the trailing stop. Here’s Wikipedia‘s definition of a trailing stop order.

A trailing stop order is entered with a stop parameter that creates a moving or trailing activation price, hence the name. This parameter is entered as a percentage change or actual specific amount of rise (or fall) in the security price. Trailing stop sell orders are used to maximize and protect profit as a stock’s price rises and limit losses when its price falls. Trailing stop buy orders are used to maximize profit when a stock’s price is falling and limit losses when it is rising.

I’m going to give you an example here. If I buy NZDJPY at 63.50 and place a trailing stop order 30 pips away at 63.20, and the rate comes down to 63.24, the trailing stop won’t be hit, and will stay there at 63.20. However, if the rate goes up to, say, 63.74, then the trailing stop will move up to 63.44 (keeping the 30-pip distance). The trailing stop moves along in the direction of your trade, but stays put if the market price goes against you. Capisci?

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It is 09:18am GMT Monday, and I still haven’t taken any trade. Why should I? I’m not a trigger-happy loser, right? I’m not trigger-happy, yeah, but I am a loser so far, that is.

After Friday’s egregious move in NZD/JPY (and the other Yen crosses), the market is wondering what’s next? Will the yen keep weakening, or was it just a one off – a freakish Friday NFP kind of trading day? I’ve read somewhere that Japanese corporations are required by law to convert all their assets into yen by the end of March for taxation purposes. Logically, that would mean there’s still quite some time for the yen to maneuver back into positions of strength, as all those companies would be buying yen. But for now, it looks like JPY will be weak for at least a couple of days. I’ll be on the sidelines at least for a few more hours.

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The US session opened favorably. I moved my SL down to 62.53 from 62.96. As per my trading plan, I opened another position of the same size.
Sold NZD/JPY @62.23, SL at 62.53 Target open

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