My first playmoney trades

Discussion in 'Forex' started by tinusp, Jul 30, 2007.

  1. tinusp


    Ok here we go, I'm new to forex trading and planning to move to real money soon (just small money but to make it realistic).

    Basic money management: I start with $5000 and will not risk more than 2% in any trade.

    I'm explaining my thoughs for entering into the trades, please explain if something is fundamentally wrong or something that can just never be profitable, have a ball, i'm ready for crit because I basically know nothing. Also look at how I change stop loss and take profit levels.

    Trade 1: EUR/USD long at 1.3680 for 40,000 units with initial stoploss at 1.3657 (a support level in the upward channel) [23 pips] and take profit level to be determined later. Reason for entering the trade just following the upward trend channel on the 5min graph.

    Trade 2: Limit order to sell USD/JPY if it reaches 117.96 for 50000 units with initial stoploss at 118.18 [22pips] and take profit to be adjusted. The level has been supported 3 times and it it breaks I expect good downside.
  2. tinusp


    Trade 1:
    Change (a)

    Move my stop loss to 1.3674 (maximum loss now 6 pips).
  3. tinusp


    Trade 1:
    Change (b)

    Move my stop loss to 1.3682 (minimum 2 pips profit)
  4. tinusp


    Trade 3:

    Limit orders:

    Current: 0.8545

    Whichever hits first:
    Buy 40,000 at 0.8551 with stop loss 0.8525 [26 pips]
    Sell 40,000 at 0.8463 with stop loss 0.8490 [27 pips]
  5. tinusp


    Trade 1:
    Change (c)

    Move my stop loss to 1.3685 (minimum 5 pips profit)
  6. tinusp


    Trade 1 (d)

    Changed stop loss to 1.3690 (min profit 10 pips)

    Trade 3 (a)

    Limit order executed and doing well, moved stop loss to 0.8553 (min profit 2 pips)
  7. tinusp


    Mmm Trade 3 hit the stop loss just after i set it. The price made a big downward spike which i could only see on the 10 second graph. Is this something that happens often?

    Anyway profit of 2 pips on trade 3.
  8. tinusp


    Hit my stop loss for trade 1 up 10 pips.

    New bankroll: $5045-23