LEARNING LESSON: FOREX

Here is a trade I was considering: It was on the EURUSD pair and I was noticing that the pair was in the OS territory based upon the slow stochastics on a daily chart. The slowK was also above the slowD and so I was expecting a bounce to the upside. I moved down to a 15 min chart and made my move. My analysis was totally wrong for a number of reasons: 1. The pair is below the 55 EMA on the daily chart and the 15 min chart as well as the 4 hour chart. 2. The trend line break was a head fake. 3. There was an error in going from the daily chart down to the 15 min chart. If I looked at the 4 hour chart, you could clearly see the slowK was moving downward and was below the slowD.

GPRE IN BUYING TERRITORY: SUCCESSFUL TRADE

If you click on the chart to the right, you will notice a green vertical line. This is a buy line based upon my trading plan. I want to enter as near to $13.12 as possible. The chart also has the targets and stop loss also listed on them.

So here is the chart of the final trade. I originally entered at $12.92 based upon the first entry signal which is the first green vertical line. There is a second entry that could have been also performed but I did not have the funds available to do so. Today, the exit signal was triggered at $14.05. That gives a $1.13 profit or 8.75% in 13 days. I will take these anytime.

02 02 2010 BUYING OPPORTUNITY IN LULU: LOSING TRADE. LOST 10% BASED UPON STOP LOSS BEING TRIGGERED

Here is a stock that is in a buying opportunity. Note the green vertical dashed line denoting such a buying opportunity.

Entry should be as near to $28.74 as possible by placing an order called a buy limit.

Setting a stop loss is the next priority. Set it at $26.04.

Setting targets is the next step. Schedule 3 targets to reach.

T1 = $30.31
T2 = $32.80
T3 = $34.15

Move you stop loss up each time a target is reached.

Well, I never got to move my stop loss up because I never made a profit off of this one. Within 4 days it came down and met my stop loss.