Saturday, October 29, 2011

Demo Forex Trade

Several of you have requested a video on a demo trade. I figured I would roll it into what I am looking at with a spreadsheet for my forex trading...

EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.

Ok first off... with as many times as I said the words "Support" and "Resistance" I am sure I switched the two somewhere. Hopefully though some good meaty ideas were shared here.

I am pretty pleased with this trade overall except for one slight problem... it was a loss. I am not trading to have warm fuzzy feelings that I have my trade setup and trade management under control. I want to make money. This loss is nothing to be discouraged about but it is something to take as a learning experience in the post trade review.

Reviewing a forex trade or any financial move after it has occurred is important. Not so much on the dwelling on were we right or wrong because that can lead to emotionally questioning things.
I want to review how the trade went exactly happened. Even if we were correct in the sense of the market moving in the direction we wanted did we make a profit? Did we make enough of one to make it worth our while? If the market we traded did not move in our direction was there a reason? Sometimes there won't be an answer here. In looking at my EUR/AUD trade after the fact I noticed most of the pairs with AUD in them moved similarly with AUD weakening. Perhaps there was news out that I didnt hear which would have moved the value of AUD but not result in a pullback like a technical analysis reason might. There are all sorts of fundamental aspects that might be involved.

Also of note from the video is that I wasn't using any other tools like moving averages, MACD, etc. Here I was mostly focusing on the size of my trade and making sure the spreadsheet was accurate. I can, and will, incorporate other technical analysis tools later to hopefully get some profitable trades.

Enjoy your Halloween weekend!

Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others.
I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.

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