Over 400 PIPs on Forex

Over the holidays, I take a break from my staple traing environment due to the low volumes. Remember, everyone is away on leave and so not many traders especially the fund managers and banks are trading the market actively. This does not bode so well for the local market as our liquidity suffers quite heavily. I rather take the opportunity that everyone else does and go on a trading holiday... except this year I decided to look into Forex.

Why Forex? Well aside from looking at Dave's Forex Breakout system discussed on an earlier post, I find that forex doesnt suffer the lack of volumes during the festive season when compared to any other market worldwide. So, I was back on the trading platform albeit for just a couple of weeks at the end of my vacation...

What did I discover? Well, that Dave was right all along. The Forex is the cleanest market I have ever traded. Amazing to see first hand how the different candle and chart patterns I use all the time to trade my ALSI and other stocks using Futures and Spread trading intruments worked even better on Forex! I was stunned!

So, I opened a demo account as the people I wanted to open an account with were closed... Not to worry I am LIVE now. But suffice to say what a pleasure trading Forex! The software platform is free from your broker. The transaction costs are the lowest I have ever found to exist on any instrument unless it's free. The risk management side is fantastic as ther eis literally 0% slippage on your stop losses and take profit levels.

So, I did some trades! I sold the Euro against the Pound as well as the Euro Vs $ on the 31st December and closed both positions on the 6th January for just over 400 Pips per position! What strategy did I use? A simple negative divergence trigger on the Day1 chart in conjunction with a 4 hourly chart. Both of these position hit my Fibonacci extension targets which was great!

I am currently selling the Euro vs $ again and watching the trade carefully. I will keep you informed about the trade!


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