Comments for Forex Trading Log http://forextradinglog.com Examining the Forex Markets with a Fine Tooth Comb Fri, 25 Jul 2008 20:59:11 +0000 http://wordpress.org/?v=2.0.5 Comment on Aussie Dollar Experiment by Forex Trading Log » Aussie Dollar Experiment (Update #2) http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-11635 Sat, 30 Jun 2007 07:50:36 +0000 http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-11635 [...] Our Experiment using this forex trading plan for trading the Aussie dollar has not yielded anything for two weeks. It actually yielded a loss of 87 pips. I’m actually stopping the experiment there after two and a bit weeks in operation. So what conclusions can we draw from this forex experiment? Well, I for one can say that a dumb and blind system like this one is not effective. The system relied solely on the 50/50 odds of a coin as well timing the markets. But hang on, what if I went the opposite side of each trade in the experiment - you could have actually made 87 pips trading forex - which is a modest income by anyone’s standards for two weeks worth of trading. Hey - at least your doing something consistent right? But on the other hand - the system lost 87 pips - which can be a substantial amount of anyone’s trading capital. when I’m feeling up for it, I’ll try out a more intelligent trading system (but simple) a little later on. It’s interesting to see that this system didn’t make much money - and didn’t take advantage of the volatile movements of the Aussie dollar over the past two weeks: hitting 85 cents then retracing back to 84 cents and below then coming back to test 85 cents yesterday night. Economic data releases in Australia this week: [...] […] Our Experiment using this forex trading plan for trading the Aussie dollar has not yielded anything for two weeks. It actually yielded a loss of 87 pips. I’m actually stopping the experiment there after two and a bit weeks in operation. So what conclusions can we draw from this forex experiment? Well, I for one can say that a dumb and blind system like this one is not effective. The system relied solely on the 50/50 odds of a coin as well timing the markets. But hang on, what if I went the opposite side of each trade in the experiment - you could have actually made 87 pips trading forex - which is a modest income by anyone’s standards for two weeks worth of trading. Hey - at least your doing something consistent right? But on the other hand - the system lost 87 pips - which can be a substantial amount of anyone’s trading capital. when I’m feeling up for it, I’ll try out a more intelligent trading system (but simple) a little later on. It’s interesting to see that this system didn’t make much money - and didn’t take advantage of the volatile movements of the Aussie dollar over the past two weeks: hitting 85 cents then retracing back to 84 cents and below then coming back to test 85 cents yesterday night. Economic data releases in Australia this week: […]

]]> Comment on Australian Dollar Searching for Bottom by Forex Trader http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-11408 Wed, 27 Jun 2007 04:05:04 +0000 http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-11408 Investing in the dollar is basically a short term investment/ forex trade. Risk in trading any currency is similar in trading any metals based on spot price, since positions are leveraged and have risks associated with leveraged trading. As with stocks and bonds, both are considered to be longer term investments and are less risky than currencies in the long term. Investing in the dollar is basically a short term investment/ forex trade. Risk in trading any currency is similar in trading any metals based on spot price, since positions are leveraged and have risks associated with leveraged trading. As with stocks and bonds, both are considered to be longer term investments and are less risky than currencies in the long term.

]]> Comment on Australian Dollar Searching for Bottom by Forex n00b http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-11401 Wed, 27 Jun 2007 03:20:23 +0000 http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-11401 I too happened on this post late, but I think my question may still be relevant. I’m fairly new to markets, so you’ll have to excuse my ignorance, but can you speak to a comparison of investing in the dollar versus investing in other markets? What is the typical risk versus the typical yield to be had in investing in dollars versus gold or silver or stocks or bonds? I too happened on this post late, but I think my question may still be relevant. I’m fairly new to markets, so you’ll have to excuse my ignorance, but can you speak to a comparison of investing in the dollar versus investing in other markets? What is the typical risk versus the typical yield to be had in investing in dollars versus gold or silver or stocks or bonds?

]]> Comment on Aussie Dollar Experiment by Forex Trading Log » No Yield Yet: Aussie Dollar Experiment (Update #1) http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-10986 Mon, 18 Jun 2007 00:24:11 +0000 http://forextradinglog.com/2007/06/13/aussie-dollar-experiment/#comment-10986 [...] There isn’t any yield yet from our experimental trading plan. So the Australian Dollar experiment got off to a bad start… is the coin just unlucky? The first two days was 100% unlucky. On Thursday, our trade opened LONG 83.94 cents at 8.50am Sydney time and closed at 83.75 cents: the trade ended with a 19 pip loss - remember, our trading plan is to exit if it hits 30 pips against our position or 60 pips if it goes towards our position. Last Friday, the coin was tails so we went short at 9am opening the position at 83.58 cents. 12 hours later we closed the trade at 83.62 cents - 4 pips loss. Unlucky? Well we’ll keep track with this progress for a while… [...] […] There isn’t any yield yet from our experimental trading plan. So the Australian Dollar experiment got off to a bad start… is the coin just unlucky? The first two days was 100% unlucky. On Thursday, our trade opened LONG 83.94 cents at 8.50am Sydney time and closed at 83.75 cents: the trade ended with a 19 pip loss - remember, our trading plan is to exit if it hits 30 pips against our position or 60 pips if it goes towards our position. Last Friday, the coin was tails so we went short at 9am opening the position at 83.58 cents. 12 hours later we closed the trade at 83.62 cents - 4 pips loss. Unlucky? Well we’ll keep track with this progress for a while… […]

]]> Comment on Australian Dollar Searching for Bottom by Forex Trader http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-10818 Wed, 13 Jun 2007 22:48:25 +0000 http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-10818 Hi VLada, Actually this post was made 5 months ago (have a look at the date). The dollar bottomed out and now its on its way above 80 cents! And going higher! Hi VLada,

Actually this post was made 5 months ago (have a look at the date). The dollar bottomed out and now its on its way above 80 cents! And going higher!

]]> Comment on Australian Dollar Searching for Bottom by vld2czech http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-5926 Sun, 13 May 2007 17:42:44 +0000 http://forextradinglog.com/2007/01/05/australian-dollar-searching-for-bottom/#comment-5926 Hello, very nice blog. Do you see AUD as it will go even lower or is it just bottom? VLada Hello,

very nice blog. Do you see AUD as it will go even lower or is it just bottom?

VLada

]]> Comment on Australian Dollar - Final Trading Day of 2006 by Forex Trading Log » Aussie Dollar Reaches Highs http://forextradinglog.com/2006/12/30/australian-dollar-final-trading-day-of-2006/#comment-2 Thu, 04 Jan 2007 11:39:50 +0000 http://forextradinglog.com/2006/12/30/australian-dollar-final-trading-day-of-2006/#comment-2 [...] Happy New Year to all my readers! I hope you have a successful year in your forex trading. It has only been 4 days into the new year and we have seen the Aussie dollar pass the resistance it was grappling with in the final days of 2006. The Aussie dollar has reached highs of up to US$0.7980 cents yesterday - even with no apparent economic data. Oh boy - but once some economic data came out of the US, reality came back to the trader’s heads and the dollar started falling… sharply. At 5pm this afternoon, the Aussie dollar had fallen down to 79.10 cents from 79.80 cents (The charts above and below are two day 1 minute charts). And at 9.23pm the dollar fell even more down to 0.7836. Note 0.7980 as a strong resistance point in future, just as how 79.10 acted as support in today’s fall for a few hours before falling sharply. Anyone who was long as a result of listening to all the talk about the AUD/USD pair making it to 80 cents this year are acting way prematurely. The market needs to see a little more proof before it is a sure bet. [...] […] Happy New Year to all my readers! I hope you have a successful year in your forex trading. It has only been 4 days into the new year and we have seen the Aussie dollar pass the resistance it was grappling with in the final days of 2006. The Aussie dollar has reached highs of up to US$0.7980 cents yesterday - even with no apparent economic data. Oh boy - but once some economic data came out of the US, reality came back to the trader’s heads and the dollar started falling… sharply. At 5pm this afternoon, the Aussie dollar had fallen down to 79.10 cents from 79.80 cents (The charts above and below are two day 1 minute charts). And at 9.23pm the dollar fell even more down to 0.7836. Note 0.7980 as a strong resistance point in future, just as how 79.10 acted as support in today’s fall for a few hours before falling sharply. Anyone who was long as a result of listening to all the talk about the AUD/USD pair making it to 80 cents this year are acting way prematurely. The market needs to see a little more proof before it is a sure bet. […]

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