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Wednesday, July 13, 2011

The USD/MXN Trade ...

A few folks had asked to see a chart that chronicles the USD/MXN trade that I journaled yesterday on the blog, Facebook page, and linked Twitter account.

Basically, this started out because I was just curious on the Peso. And then I began to look at the larger time frames. As I mentioned yesterday, I've been picking the brains of a few Forex traders, and one trader in particular. We'll call him "C". "C" has strongly intoned to me that with Forex, it's all about the larger trend. When I saw the larger trend on USD/MXN, I figured I wanted to find an opportunity to be short.

Thus, we come to yesterday morning ...

USD/MXN 10 Minute Chart
(Click to Enlarge
)


If you note the twitter feed, I shred off 60% of the position on the first move down somwhere around 11.7812/1. And then, for the rest of the day, I continued to shred off the position, 75 at a time, each time we moved lower.

Actually, I didn't do it as effectively as I liked, because I was still figuring out my way around the Oanda platform, making some simple mistakes. At the end of the trade, I made a mistake of order entry ... but that's why I'm testing this all out beforehand. By 4:00 pm est, when it started moving higher, I had 50 or so left, and made only a few pips on the very last bit. So on the $300.00 level, this would have represented a gain of less than 1%, which is not unusual for my commodity futures trading. On the $50.00 account, this would have represented a gain of about 1% even.

I keep asking "Was it really this simple all along?"

"C" keeps telling me is ... "No if you're a trader it is that easy. If you're not the leverage, the need to be able to trade in both directions and 24 hour (but hidden different sessions) open market will eat you alive."

For now, I am going to keep demo trading it, just to make sure that I have a complete handle on things.

* * *

Note: The above statements should not be construed as an investment or trading recommendation. Airelon's Investing and Trading Journal is a blog that allows subscribers to look 'over my shoulder' as it were, for my own personal specific trading and investing ideas and thoughts for the next week. But they are only thoughts as of the moment of publication, and are subject to change.. Any trades or investments that I discuss within this blog are simply my own thoughts regarding my own investing and trading outlook. Remember that entering any market is an individual decision. There is no guarantee that I will enter, or have entered any of the trading or investing ideas that I discuss in this blog; as larger accounts may require a different strategy as the ones presented here. This blog simply contains my trading and investing thoughts for the next week. I, the author do not grant this work for wide distribution beyond any single individual subscriber as this publication is protected by U.S. And International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except as permitted under the original subscription agreement or with prior written permission. I personally only enter any market after watching and reading the tape and I trade using money management principles. The losses in trading can be very real, and depending on the investment vehicle and market, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. I do have 15 years of experience in trading and investing in these markets. Airelon's Challenge Chronicles are demo accounts,with all of the inherent problems therein, which are used within this blog in an attempt to track the results of my own thought processes., and is run as a model. Traders who should make their own decisions based off their own research, due diligence, and tolerance for risk. Any pictures used within this blog are believed to be public domain. Any charts that displayed using the ThinkorSwim platform, or any other charting software are believed to be public domain. Any other pictures were obtained through Wikipedia's public domain policy. As a reminder, any trades discussed for "Airelon's Challenge Chronicles" would only be 'day trades' according to the parameters discussed for Airelon's Challenge Chronicles, at this stage of the game in order to escape the risk of over-leveraged gap opens in the commodity futures markets. As a 'trading sister' would have grown to the $30,000 level, I would have graduated the account into 'swing trading'. In addition, it is understood that readers have read my YouTube methodology series. It is also understood that the writer of this blog has repeatedly warned against the dangers of shadowing any other traders thoughts. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk

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