Monday, February 27, 2012

27th Feb 2012 - USDJPY hits TP

This was a textbook trade. My pending long on the USDJPY was triggered on Friday as resistance from August 2011 broke and the pair entered a bull run. It hit my take-profit target today before bouncing off resistance from July 2011. Profit = 99 pips.


I saw an inside bar form in the USDCAD, but price action over February looked pretty ugly. Price WILL breakout, but there's alot of potential to get whipsawed in an undecisive market before then, so I decided to sit this one out. 21 EMA looked very flat too.


  1. For those of you who just want to trade FX you're already limiting yourselves a little bit. If you have a view on a situation often it will lead you to different markets. You have to have a genuine opportunity and be sure there is an opportunity.'

    For example, a view on a currency will usually stem from a view on that country's economy.

    If you are long on the Australian dollar, why not think about the themes that have led you to take that position and whether you can benefit from investment in those. Links with China, high demand for its commodities and the high yield paid by the RBA are chief reasons cited to invest in the Aussie dollar.

    Could you use that information to seek out mining companies with exposure to Australia's commodity story?

  2. just some tips from richard farleigh-read up on him, he's absolutely fascinating!!!!

  3. Hey! It's my longer-term goal to diversify into other markets, definitely. But there are other nuances about stocks that I don't like, like researching individual company performance, which makes my job 100x longer. Why research gold companies and take on the risk of individual mines opening or closing, when you can just buy gold or the Aussie dollar? :)

    Farleigh assumes that you're using fundamental analysis (news, politics etc) in determining your trades. There's nothing wrong with this, but this is long-term stuff (holding a position for 6+ months?). My system is alot more technical (recognising psychological market patterns) and as you can see, I don't hold my trades for long, maybe a week or two at most! There are so many different schools and philosophies out there. Neither of them are wrong. But he definitely sounds like an interesting guy! There's alot of articles on that site. I'm checking them out now.


Note: Only a member of this blog may post a comment.