Tag Archive for currencies

The Adventures of a Trader in the Forex Land (5) – More Japan – UK Correlations

twister-sister-gbp-jpy-minutes-graph-april-22-2010 Or (if you want) miss-correlations. As all of your guru traders will say, in the forex trading you learn for your lifetime. And when you think you saw them all, something   comes and takes away all your confidence (and hopefully not your profits, especially when you have the risk management tools in place).

What happened? I decided to test today on the MetaTrader 4 (MT4) platform the buy stop and the buy limit orders on the “twister sister” or the GBP/JPY pair. And the results were quite interesting.

So what happened? I placed from the previous day a buy limit order on the GBP/JPY, on the assumption that the yen currency will devaluate a bit whilst the pound will be stable. This was based on the relatively mild-to-bad incoming economic news: the trade balance of Japan was on the larger side of the forecasts, whilst the GBP news (public sector borrowing, retail sales and preliminary mortgage approvals, to name just a few) should have been better. And so they were. Read more

Book Review – “Forex on Five Hours a Week: How To Make Money Trading on Your Own Time” by Raghee Horner

Lately I have been reading many forex trading books, trying to climb quickly the steep learning curve necessary. Necessary to transform this into a full time occupation. In the beginning I thought it was easy, as most of the beginner traders think. Just read a couple of books and test a bit the platform for trading forex pairs, no matter what it is: Metastock or metatrader or other proprietary platform. They all looked the same and the methods seemed easy. Manage your risk, manage your emotions, play with technical indicators and your life will become soon easy and flowing.

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Adventures of a Trader in the Forex Land (4) – About Japan and Big Mistakes

I tried last week to trade yen against the news. I thought that the news release on China (that exports are much stronger than expected) will actually move the yen a bit upwards versus other currencies, then the Japan currency will resume its decline. In brief, I was arguing that the yen appreciation will last very short. Read more