Hello all new readers to my very first entry on the Spreadbet Magazine blog.
I intend to share my thoughts & views on the current state of the market and, more importantly, the trades that I place – in short, I’m baring my trading soul and at the very least hope to illustrate where both I and many traders make mistakes.
As a relatively new trader you’ll bare witness to the horror that is trying to learn to trade whilst risking real money, all the while fighting with all of the human emotions that I as a new trader have. Sometimes it’s an easy ride, at times it will be a car crash. I hope it stays entertaining!
Friday was an interesting day. I was half thinking that we would test the 1360 level on the SPX, consolidate there and wait until after the weekend before making the next move. We ground up to this point throughout the day and then in the last hour of US trading popped up through that level.
The Dollar Index has however not made a new low. For me, this is a warning as the $ index and the SPX are, in my opinion, currently inversely correlated. I’ll believe the new high in the SPX more when the $ makes a new low.
However, the dollar weakness over the last couple of days has helped my NZD/USD trade and in part my NZD/JPY trade.
The charts show that the NZD/USD is looking likely to test 0.8100 and if that were to break 0.8200. Above there and we’re testing a down trendline which is a year long, and so there maybe a trend line reversal to keep an eye on. The NZD/JPY has been in uptrend over the last year or so, successfully making higher highs and higher lows. We’ve just come out of a deep retracement of 90% and are starting to make intraday higher highs. Long may the NZD bull run continue. My stops are trailing and I’ll update each night how far I get with them.
My main strategy is an end of day trade on the Forex and I have access to about 50 pairs. I prefer the Majors but i’ll trade the Minors and Exotics too. Seeing 1000’s of pips in the P/L always gives me a confidence boost, so expect to see USD/MXN every now and then after a draw down 😉
Right, I’ll keep the first entry quite short as I don’t want to pretend that I know what is going to happen on Monday (unlike many people, likely much to their chagrin usually!) I look forward to sharing my trades with you and I hope that we have a trending market for the rest of the year.