Open trading account 
Having taken one trade yesterday and made 200K I decided to short the EURJPY, NZDJPY and AUDJPY. My reason for this was the fact that they are in ad own trend. Or they certainly were, I use 1 indicator on my hour chart to determine the trend and that is the 200 MA, I still think from this they are under my 200 MA and hence I would only look for sell trades.
The problem starts when the trend is about to change and thats what I think may have happened, I sold to early and set too small stops, hence I got wiped out on both the AUD and the NZD because I was selling both against the Yen. This is like doing the same trade so why did I get it wrong twice?
Well firstly, I shorted the AUDJPY first, rather than wait a day for the market to settle down I went short the NZD late in the day because I was not patient, again I used to small a stop, my rule is now if you see a big move against the trend wait for the london open to correct it. Had I done that I would have not made a loss on those two positions.
I managed to recover my account back to 100K today so I am still able to go forward. My trade today is the AUD and NZD against the GBP. This is in a clear uptrend and hence my bias is to buy. There is AUD news out today at 12 am so I will look to put a buy order in close to the time. The reason I am looking to buy is that the trend is up on the AUDGBP and AUDNZD.
At some point I will get caught on a bigger correction hence I want to get in with big orders fairly early on in the contest. Often during the month you will see the leader board completely change as the people that were trading in one direction get shook out of their positions and the market resets. If you can make your money quickly in the contest it is best to then sit tight, and only go for really good good trades.
In part three we can look at good trade selection.
The problem starts when the trend is about to change and thats what I think may have happened, I sold to early and set too small stops, hence I got wiped out on both the AUD and the NZD because I was selling both against the Yen. This is like doing the same trade so why did I get it wrong twice?
Well firstly, I shorted the AUDJPY first, rather than wait a day for the market to settle down I went short the NZD late in the day because I was not patient, again I used to small a stop, my rule is now if you see a big move against the trend wait for the london open to correct it. Had I done that I would have not made a loss on those two positions.
I managed to recover my account back to 100K today so I am still able to go forward. My trade today is the AUD and NZD against the GBP. This is in a clear uptrend and hence my bias is to buy. There is AUD news out today at 12 am so I will look to put a buy order in close to the time. The reason I am looking to buy is that the trend is up on the AUDGBP and AUDNZD.
At some point I will get caught on a bigger correction hence I want to get in with big orders fairly early on in the contest. Often during the month you will see the leader board completely change as the people that were trading in one direction get shook out of their positions and the market resets. If you can make your money quickly in the contest it is best to then sit tight, and only go for really good good trades.
In part three we can look at good trade selection.
