FOREX TRADERS

[Capitalist]

Whew, what a week! Good to be back in the FOREX iHub "lounge" on a Friday night.

Not only was it a NFF week, but what's up with all the interest rate announcements at the same time? Top it off with the BOE surprise rate cut and you get a week where the markets just seem to want to eat us all up in the chop.

I started the week with a big negative opinion on the USD and GBP/JPY. Opened a short on GBP/JPY with too tight a stop on Monday's London session and lost a little there. Then I started building another short by scaling in and made the money back on that before I noticed around mid-week that the downward momentum seemed to be gone, so I closed that out too. Just in the nick of time, which is pretty unusual for me.



I also had a short on the USD/CHF, but when all the good US news started coming out, I closed that too pretty close to B/E. Same deal with EUR/AUD; I had a long position and dumped it immediately when good news started coming out of Australia. So with all my longer term positions closed out, I spent the rest of the week concentrating on my scalping skills with EUR/JPY.

I basically broke even for the week and Hector, one of the pros that I follow, just decided to throw up his hands and sit out the week altogether. I could have accomplished what I did by sitting on a beach somewhere instead of in front of my screen, LOL. Actually, that's not entirely true because I got a lot of screen time scalping tiny positions and analyzing my trades trying to develop a good system. So it was a good learning week for me and I've got my trading schedule, routine, and general strategies pretty well nailed down. Just working out the details.

I'm seeing a few new faces here this week and I would like to welcome all the new FOREX wizards in training to the room, although I know the krazy CaT and the other regulars have already done that.

From some of the comments I saw, I'd like to caution the new traders to TAKE SMALL POSITIONS AT FIRST. Don't be impatient. This is not like penny stocks where you might have to wait for six weeks before something moves by 2 ticks one way or the other. There is constantly money moving all around us in this market. There is always something happening and always a new opportunity to just reach out and pick up a piece of that cash. So don't force it. Trade small until you can win consistently. If you miss a big move today, there will be a hundred more next month. Relax people. Relax. :)

To start off the weekend, here's an excerpt from Peter Murphy's "Cuts you up." I know he didn't write this about the market of course, but during my many hours watching the movements of EUR/JPY on a 5-second chart this week, it occurred to me how descriptive this is...


You know the way it twists and turns
Changing colour, spinning yarns
You know the way it leaves you dry
It cuts you up, it takes you high
You know the way it's painted gold
Is it honey? Is it gold?
You know the way it throws about.
It takes you in and spits you out
It spits you out when you desire
to conquer it, to feel you're higher
To follow it you must be clean,
with mistakes that you do mean
Move the heart, switch the pace
Look for what seems out of place


Here's the vid: