Wednesday, April 19, 2006

Second Trade

My second trade
Now here is where it gets interesting. I decided to short AUD. I didn’t use any indicators or fundamental analysis I just entered the trade. I did luckily have a stop loss in place.

Here it is:
Time Open: 15:18 GMT 17/04/06
Initial Price: 0.7377
Stop Loss: 0.7397
Take Profit: 0.7352

Potential downside: USD$200
Potential Upside: USD$200
NOTE: A 25 pip gain is really only 20 pip gain due to the five pip spread on the AUD/USD

Below shows the chart when opened:




The stop loss was hit and my loss from this trade was $210 plus $1.90 swap. This will be my last trade until I gain some knowledge on the use of indicators. It is only pure luck that my account balance is positive.

1 comment:

Dr.Forex said...

one thing that maight help you is to zoom out. watch the whole story not just the close ranged stuff.

for fudamental help here is a exelent commentary site.

http://news.efxnow.com/EN/Commentary/index.html