Welcome to my first monthly Forex trading log! A few weeks ago I decided to switch from weekly to monthly Forex reports because the slower-paced nature of swing trading lends itself better to longer periods of time; 7 days often didn’t provide enough (if any) activity to write about, and I didn’t want to start forcing myself to take riskier, lower-quality trades just for the sake of having something to post.
March was a very slow month trading-wise. I only had 3 trades, two of which were actually still in play from the end of February.
|ENTRY DATE||2/22/16 – 5:47 PM|
|EXIT DATE||3/2/2016 – 12:45 AM|
|ENTRY DATE||2/26/16 – 7:28 AM|
|EXIT DATE||3/2/2016 – 12:48 AM|
Both of these trades were opened at the end of February. At the time, it seemed as though the GBP was about to start another deep descent, but after falling a couple hundred pips, it quickly became apparent that it was stalling again, potentially even beginning a reversal upward.
As such, I decided to close both trades while they were still in profit. I made $148.59 off of these, which I certainly can’t complain about!
|ENTRY DATE||3/29/16 – 5:38 PM|
|EXIT DATE||3/31/2016 – 9:06 AM|
Since the pyramiding trading strategy using Heikin-Ashi candlesticks that I described in this post only presents a handful of good trading opportunities per year, when no such opportunities are present, I stick to trading the daily charts with regular candlesticks, major support/resistance levels, and tried-and-true patterns such as pin bars, engulfing bars, and inside bars. I like to keep things simple, because in trading, simple works.
In this case, I shorted the US dollar against the Canadian dollar after a bearish engulfing candlestick appeared on the daily chart. The price had recently breached the 200-period SMA (simple moving average) before retracing a little bit back to said moving average, which gave me even more confidence in this engulfing pattern.
The pattern’s appearance also coincided with the downward crossing of the 25-period SMA with the 200-period SMA, and with the Slow Stochastics crossing down through the overbought zone, which further confirmed the bearish case for this trade (a confluence of multiple agreeing signals is always good).
The major support level around 1.2850 gave me a natural target to aim for with a nice risk/reward ratio in the vicinity of 1:2.2 or so. This was what I would consider a perfect, high-probability trade.
The US dollar did indeed drop to my target, and I closed the trade with a cool $110 in the bag.
Even though I only had 3 trades in March, I still walked away with about $250. This goes to show that in trading, more is not always better. In my opinion, quality trumps quantity, and I much prefer to approach the market like a swing trader, taking only a handful of trades with high-probability setups. It’s been working well for me thus far, as evidenced by the consistent profits I’ve accrued since I began live trading 6 months or so ago.
Anyway, that’s it for March. Onward to April!