TradeProfits

Random Noise

Posted on 31. Dec, 2009 by Jakob.

It’s the last day of 2009 and probably the last post of the year. It’s been an interesting year with a lot of new things taking place in the trading environment. In one of the upcoming days I will write more about what has been happening here at TradeProfits and some of my plans for the upcoming year. For now, I just want to share a few interesting topics with you guys.  Read more... (310 words, estimated 1:14 mins reading time)

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Profit Mongers – Review

Posted on 30. Dec, 2009 by Jakob.

A while ago, I wrote a preview of a new service called Profit Mongers. I got an email about it in the end of September, when the service was launched. Now, I get a bunch of emails daily about new services, products, eBooks, requests of reviews, etc. However, when I learned about Profit Mongers, it caught my interest right away. The reason is that the email I received was from the guy who has been running the Forex Diamond Room for a long period, AKA Sir Pipsalot. I was a member of the Forex Diamond Room for a short period, and I really enjoyed it (see the review here). So with a launch of this new service, which is cheaper than Forex Diamonds, I thought I would check it out. I replied to the email, and they were kind enough to give me a free membership, in return of an honest review of their service. So here goes:  Read more... (1343 words, estimated 5:22 mins reading time)

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Sive Morten – Update on the Forex Market

Posted on 29. Dec, 2009 by Jakob.

Sive Morten has just posted his weekly outlook, and as always he shares some interesting thought on the overall market, and specific details about the EUR/USD. Basically he argues that the short term Dollar strength remains intact, while from a long term perspective we might see a bearish trend for the Dollar. In my opinion I think we need to see the EUR/USD retrace a bit, before it will continue its bearish move. Currently the EUR/USD is trading at 1.4416. I entered a long trade on EUR/USD at 1.4341 so I am currently up about 75 pips (all details for this trade were shared on Twitter). I have moved my stop loss to break even, and I expect to see it retrace up to around 1.4541, and if that resistance level is broken then maybe all the way up to 1.4710. I might move my stop loss accordingly, if the pair keeps moving higher, and look to take profit if we come close to 1.4541. If this level is reached I might look for a possible short trade, or wait for it to break the current low of 1.4216. As always, be careful in these days, as low liquidity can result in large spikes within seconds. Check out Sive Morten’s weekly update here.

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Practice Stock Trading with TradingSim

Posted on 28. Dec, 2009 by Jakob.

TradingSim is a new trading simulator where you can practice stock trading. This is a great way to get started without risking your own money. Simply go to TradingSim and sign up for an account and start trading. You can chose between several different symbols, add indicators, change time frames and chart types, and you have the option to buy and sell short; just like in real life. The only important thing missing, which I would have enjoyed, is a screen with market depth; currently it only shows level 1. TradingSim offers a great possibility for you to learn how to read charts and price action. The best thing about it is that it is absolutely free. Signing up will take less than 1 minute. Check out TradingSim here.

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36 Pips Move in a few Seconds

Posted on 27. Dec, 2009 by Jakob.

I am not talking about profit here, unfortunately. Take a look at the two pictures below. The first one is on the 1-minute time frame and the second one is on the 30-minute time frame. Both the pictures are from my Oanda account, earlier this evening. The first move since the holidays was a whipsaw down and back up within a few seconds, in a total range of 36 pips. When you look at it from the 30-minute time frame, it is nothing but one long candlestick shadow. I have seen this in Oanda before; crazy spikes which are not similar on other broker platforms. Hence it seems reasonable to question why this happens on Oandas platform. One might first assume that if this spike is a mistake, your trade (in case you got one running over the weekend), will not be affected by such a spike, but you would be wrong. I have been stopped out by similar movements before. At this moment I have a long trade on the EUR/USD, but luckily for me, my stop loss was further down, so this time I was not affected by this spike, but I am sure some traders out there did. Although I am very satisfied with Oanda, this is one aspect which you might want to take into consideration, before signing up with them.  Read more... (226 words, 2 images, estimated 54 secs reading time)

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Forex No Loss Robot Loses Big Time

Posted on 27. Dec, 2009 by Jakob.

I have allowed myself to copy this picture from 4xproject, as I simply needed to share it. It doesn’t get much better than this!

 Read more... (104 words, 1 image, estimated 25 secs reading time)

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Forex Peace Army – Signal Change & Updates

Posted on 16. Dec, 2009 by Jakob.

Forex Peace Army used to send forex signals out to their subscribers, one email per day, with trade recommendations for the upcoming day. However, a while ago, they changed this, and instead of one email, they started to send several emails, regarding the upcoming news events, and how to trade them. In the new way of delivering signals there is a stronger focus on news trading, and less on the overall market movement and correlation with the major indexes. Apparently not everyone enjoyed this new approach (including me), so the guys from Forex Peace Army sent out an email asking their members to vote for their favorite method. You can see the results here; it seems like we might go back to the old way again. In addition to the new daily signals which are made by Felix, you can still see the daily signal recommendation from Sir Pipsalot here, and the weekly outlook from Sive Morten here.  Read more... (238 words, estimated 57 secs reading time)

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Currency Meter 2.0 from Henry Liu

Posted on 16. Dec, 2009 by Jakob.

In this post, I wrote about a free currency meter, developed by Henry Liu. It is a great extra little tool to have, when you trade the forex market. However, it did have some minor issues; specially there was a problem with the size, which gave some users problems to see the actual numbers. In the new version you are able to change the size of the currency meter, so this is no longer a problem. In addition to this, the commercial banners have been removed, the CPU load and tasking have been improved, and a text field has been added so you can add your own symbols. I have tried it and it definitely a lot better than the first version. For the time being, the Currency meter is still free. Check it out here.

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Daily Lesson # 1

Posted on 09. Dec, 2009 by Jakob.

First of all, click on the small picture below and take a look at the chart. The two vertical red lines is the daily range of EUR/USD of yesterday December 8th, from at 15 minute candle stick time frame. The trendline drawn starts from the low of December 7th and is connected with a higher low, later on same day. Yesterday, December 8th, the trendline is confirmed by a third test of the line. Later on same day, the pair follows nicely along the trendline until it finally breaks it and closes a 15 minute candlestick below the trendline. However, there is no real momentum after this break, hence it might not be the best place to short, due to the possibility of stop loss hunting. If there is no momentum, it might be a better idea to wait for a re-test of the trend line and then look for a possible short entry. This is exactly what happened later on, same day. On the chart we see a perfect retracement right back to the trendline, and right after the pair gets bearish and keeps on falling throughout the rest of the day. In addition to this, a short trade would be preferable due to the, better than expected, NFP number which came out last Friday. This number pushed the EUR/USD down hard, and this small increase in EUR/USD which we have seen yesterday was a needed retracement after such a spike down. Personally I would wait for the 1 hour candle stick to close, and re-test, rather than basing my trade on the 15 minute timeframe. But if you take a look on the 1 hour time frame, you will see exactly the same opportunity to short at the re-test. Before entering a trade, it is always a good idea to look for confirmation in several ways; check other timeframes, look for support and resistance on correlating currency pairs, stock indexes, gold, silver, crude, etc. In addition to this, you should be aware of news releases; when fundamental news are released, technical analysis matters less, specially if the market is surprised by large deviations. Also take note of the current time; when the stock market opens, things can get volatile, and retracements or reversals are rather common during this period.  Read more... (382 words, 1 image, estimated 1:32 mins reading time)

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November in Review

Posted on 07. Dec, 2009 by Jakob.

Here is to the first month with a negative result since I started posting my trades back in June 2009. Things did not go well at all, and I gave back a lot of the profit made in the last couple of month. I had a total of 12 trades, whereas 10 of them ended in a loss, 1 in profit, and the last trade was closed in a small profit but I counted that as break even, due to spreads. Basically I ended the month with a loss of 9.94%; a really bad result compared to the other months so far. What really affected the results this month was my attempt to short EUR/USD, several times. This pair has basically been consolidating within a rather large range the entire month and I simply did not wait for clear enough signals. I will do my very best to change this, for future signals. However, we did make everything back, plus more, in the first days of December; I traded the Non Farm Payroll, and this resulted in a total of 16.4% return on account balance. However, there is definitely room for improvement. More planning and sticking to it, and trend following, should do a lot. Let’s see how things play out in the last month of the year.  Read more... (230 words, estimated 55 secs reading time)

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