Day 2

Balance $244.58

Enter 1.3346

Take profit 1.3360

Risk trades on the rise

Traders have take on more risk ahead of RBA's announcement, EUR/USD has bounce from 1.328 to 1.3325. Resistance for the pair seen at 1.3367 at moment of posting.

EUR/USD hits under 1.3300

Seems like the focus is back on sovereign debt concerns again. The pair has hit under 1.33 and at the time of this post it's 1.3254.

It's gone a long down since this morning when I traded at 1.338...it's so difficult to keep your hands off when there's so much happening. Persevere! Stick to the plan!

Got to keep my eyes off the computer!

One thing about having too much time on hand is that there's nothing to do. I keep staring at my computer. I've already reach my target for today, yet I have the urge to continue trading.

My analysis for the day is EUR/USD short, I reached my target at point 1.3351, but the pair's been going down to 1.3333. The urge is definitely there to short further, especially since USD is consolidating before the bells in Europe start ringing. Besides, there are talks of QE3! Go Bank of Bernanke!

Day 1 EUR/USD

Today is the 6 of December 2010, couple of weeks more to Christmas.

0924h Short 1.3384, took profit at 1.3378 + $1.20

0933h Short 1.3377 took profit at 1.3355 +$11.00

1009h Short 1.3357 took profit at 1.3351 +$3.00

Total gain is +$15.20

That's the end of trading for me for today.

Now looking at what happened last week with the less than expected NFP numbers, EUR/USD looks set to climb up, reaching above 1.34. However, there don't seem to be anymore news coming out from the EU zone hat could help sustain this, my thoughts are it will prob trade between the 1.3340/1.3410 zone. If it stays below 1.3340, my guess will it will prob hit 1.3290 by end of the day.

But hey I'm no expert, it's just my guess.

The Strategy!

The Strategy, The MasterPlan, what ever you call it is actually a very simple thing. I've been trading for a couple of years and while I did make huge profits (to my standards), I lost them pretty much easily in the next couple of minutes!

Now this plan of mine is very simple, I will take out $200 as my capital and my target at the end of the month or 25 trading days later, to reach a sum of $1,123. Here's how I plan to do it.

Capital $200, my daily trades has to be 7% return of my accumulated capital.

What it means is on Day 1, I would have to have a gain of $14, (balance $214) Day 2 to a gain of $15 based on the closing figure of Day 1's balance. By the end of Day 25, I would reach $1,123 in total.

Here's how it would look like in a table

Capital Day 1 Day 2 Day 3 Day 4 ............... Day 25

$200 $14 $15 $17 $18 $1,123

It doesn't look difficult and to be frank it looks stupid. However, this plan takes a of patience and self-control. Why you might ask. Well for the following reasons.

1. The pair you are trading may go up or go down. Meaning you can either profit or make a loss!

2. If you are on a winning streak, you will want to continue despite hitting your daily target set out. In this situation, you might easily get caught up in it and end up losing what you have gained in the earlier part of the day. It is very easy to be tempted.

3. Do you have the patience to trade 25 days without deviating from the plan. Do you know when to say it's time to call it a day or when to cut your losses?

Well, that's what I intend to find out. If I do succeed, it will be a great self-improvement exercise, if I don't, I probably will lose the $200

Purpose of this blog

Purpose of this blog is to keep track of my forex trading. I'm a person of ill discipline, I may have the best ideas in the world, but I just don't have the discipline to stick to the plans. Hence the idea to keep track of my ideas in Forex.

You may ask why do it in the public domain? Well, I'm also a person very particular about face value, broadcasting to the WWW about my intentions and not doing it will just make me lose my rep.(Not that I've much of a rep to begin with)

Anyway I will update my daily trades in accordance to my strategy. I will also input news and my thoughts regularly. It's part of my way of thinking out loud. Sometimes it makes things easier to see. :)