Review of GBP/JPY

Was waiting for key resistance of 143.25 to break. Price broke above the range, and rallied. 
Stop loss was set based on M5. That was a mistake. 
It should have been set based on H1.
Took the long trade again after taking 2 hits. 
Wasn't a good trading day. 
To refine stop loss for future trades.   

Results for this Week (21 - 25 Jan 2013)

FX Trading Insights

I have been busy refining my trading strategies. And so far, it has served me well. 

I have learned the following in the past 2 - 3 weeks. I will share just 2 points for you to chew on.

• Money management was something I neglected in the past. Have you ever experienced making 3 consecutive winning trades, but giving it all back in 1 losing trade. Guess what? It happened to me ALL THE TIME! The loss weighs heavily on my mind - It affects my confidence. I start to doubt my trading strategies, and the next time I want to place a trade, I am afraid to pull the trigger. Now, I keep my lot size fixed for at least 1 month. I know that even if I lose 1 trade, my capital is still intact. Knowing that my capital is safe allows me to trade without much stress.

• Having a good trading Strategy is definitely one of the most important components in our journey to be consistent. Someone recently shared with me that in a range market, you buy low, sell high. And in a trending market, you buy high and sell low. It made a lot of sense. In the past, I am often afraid to buy high, and sell high, for fear that market will suddenly reverse against me. Instead of buying high, I would sell high in a trending market, making it effectively a counter-trend trade. You cannot imagine how many times I have bled money by trading counter-trend trades. So really, the smarter thing to do is to keep things simple in FX trading. Now, I am confident in my trading method because I know it works. Why? Because following the market always work. At the same time, though, I have room for improvement, and I strive to improve everyday.

 I will share more about my other insights in the next few posts. Stay tuned!

eToro

Let's start with our first Broker, eToro.

So... what's the hype about eToro???

1. Social Trading
2. Referral Fees 

Do you agree that most retail traders will look at the spread offered?

Next, we will look at how convenient to deposit funds into our trading account.

 
How easy/difficult is it to withdraw funds when we need them?

Order execution is also important. I can safely say that the Order execution policy seem fair enough.

Just so that we know, if there are technology glitches, we can't really do anything.

All in all, I personally would give this broker a miss because of the unnecessary withdrawal fees and the slow withdrawal process. There are several methods to deposit funds, but very inconvenient to withdraw funds. Reminds me of Online Poker sites. In fact, the spread isn't very competitive given that it is not an ECN broker. Nothing to shout about, really.
 

Dynamic Spread at Oanda!

Oanda is offering Dynamic spread! 

Guess what it means? 

Congratulations! You got it right!

It simply means WIDENING of spreads!  

Today I opened EUR/USD trades with 1.8 - 2 pips spread, up from it's typical spread of 1 - 1.1 pips.

Im gonna close my account with Oanda very soon.