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Coffee thought – Trading the chart?

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Trading the chart?
Trading the Chart?

Just some thoughts when I am having my morning coffee in the rainy Melbourne.

Trading the Chart?

How should a trader use a price chart? This is just another question without an answer. Some traders claim themselves as “chart trader”. Yeah, give him a chart, he can trade his ass up.

Thinking in this way. We trade our view or opinion about the market. Trading, particularly, currency trading in my case, we are speculating. Yup, it is all about speculation. It is speculation, because you, in fact, nobody, know for sure which way the market is moving. Regardless of the time frame, you are trading off, you are trading your own opinion.

So, I know I am speculating. I know the price won’t necessarily reverse when RSI is over 70/30 or the MACD is crossing over some magic lines.  Then what?

coffee_roaster

Forming your opinion. Explaining to yourself why do you think Dollar sucked, and you should short it. 

I am talking about your own opinion, not the one from the talking heads on CNBC/Bloomberg or DailyFX.

Face it, there is really no expert in the trading industry. There are just a bunch of people who know more jargon, reading more news, and writing more craps than you do. Disagree with me? That’s your problem.

Now use the price chart as a roadmap. 

So, you have formed your opinion. Cool. But do you know where you are?  You gotta know your current location before start driving to your next destination.  Here is where the fancy technical analysis comes in. Start confusing yourself with the trendlines, CCI indicators, pivot points, or some chicken indicators.

That’s part of the process. And nothing is wrong with that. As long as you are convinced, and you know where you currently are, and where you are heading, they are all good.

Stop or being stopped at some points is just part of the game.  We evaluate , and decide the next move. Well, at least, that’s how I trade.

Crap, I think I talked too much today. Enjoy your weekend.

Busy week

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The idea box generated quite a number of trades after the first disastrous day. 😆

All trades were focusing on Long EURGBP, and short USDJPY. Friends on my Facebook would have known I was trading these two pairs frequently this week.  The idea box is built with a stupid trend following method couple with fundamental analysis . Whatever you wanna call. I don’t care. It all about speculation.

Here is to show you one of the EURGBP trade I’d made.

eurgbp

Anyway, Christmas is around the corner. People are again spending like hell. Yup, they might know how shitty economy condition Aussie is facing soon. There are just too many reasons to spend. And THE Government is asking us to spend.

I am still trading next week. And after that I will be taking time off for Christmas/ New  Year break.  And taking the time to review my trading this year. Gut feeling tells me it is not going to be as impressive as I had expected at the beginning of the year. It took me a little too long to adjust my trading style to fit into the changing market condition. Let’s see.

Experimental Idea box : Trades for Monday

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I am running an experiment. Here are the trading ideas that generated from my idea box. I have no idea how will it work out. Let’s see.

Here are the currency pairs to watch for Monday 08-December-2008

GBPUSD : SHORT

USDJPY: SHORT

EURGBP: LONG

GBPJPY: SHORT

Positions to be established at the open of Asian session.

*Experimental ideas, don’t risk your life following them 😆

Tuesday

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Big day in Australia. 100 basis points cut brought us to 4.25% now. But at the same time RBA hinted that’s the end of easing (uhm…do you…trust..R..B..A…eh?) . Anyway,  I guess, it managed to killed some shorts. 😆

I did two trades today. Shorted the AUDJPY in the begining of Asian session, bagged some profits. Shorted EURUSD again at the open of London session, again, bagged some profit. London session doesn’t continue the sell off of Euro.

I was working at home today. I let CNBC/Bloomberg play the whole day on my TV. Panic and fear. And they just kept repeating “U.S is confirmed in recession since last December”. WTH? who cares about this confirmation?

Anyway, that’s all for today.

Tale of two trades — USDJPY, EURUSD

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In order to salvage my getting lower blog readerships (in fact, it is consistently low readership 😆 ) , I am going to post two trades that I have made today , 01-Dec-2008, London session.  it is show off time again! 🙂

Scalping? Yeah, I do scalp.  But, I have a box of trading styles, so don’t waste your time guessing. 😆

I told you I have a negative view of Dollar. This is particular true when watching USDJPY. I watched the opening hour of London session, let the price flowed, and wait for the currency pair to form my favorite setup.  BANG! Shot the Dollar, Oops, I mean short. Aggressive price movement, with aggressive trailing stop.

Here is the …. CHART! small +40 pips.

OK, now EURUSD. I told you ..blah blah blah…but, Euro looked weak.. So, I shorted EURUSD.  Dollar was weak. So the trade closed with small profit. Thanks to the partial profit taking orders.

Here is the… CHART!

That’s all. Two trades for the day. I am off for shower and dinner. Ciao!