Forex Diet

I am on a forex diet recently. My recent losses has forced myself to quit looking at the forex market and stop trading. Lately I was so hooked on trading that I kept jumping in and out of the market trying to get on the trend until I later realized that I was already down by so much dollars. Now I am back to square one again.

It was just yesterday that I opened my OANDA trading page again. I was trading the AUDJPY( on $1 trades of course) and I felt that this currency pair wants to eat you alive. I traded in and out trying to catch the trend but as soon as you get in, it immediately reverses itself and find yourself negative again. I did this for some time until I got frustrated and tried another active pair, which is the GBPJPY.

I liked the GBPJPY much better. The currency moves where it wants to go. It does not stop and reverse every so often like it wants to whip out every trader who steps in the market. The price moves are smoother. There are several periods during the day where the pair moves significantly which if traded properly might give you a pip or so.

I looked at the 15 min chart of the GBPJPY and saw that the pair moves significantly before and during the Tokyo, UK and NY open. Right now 2:53 AM(Seoul time) it is moving again. I don't know what is happening right now, maybe it is the near the close of the NY market.

Just to show how nice this pair is, I opened a trade before I started writing this post and placed a take profit of some pips above my entry(I just placed it before the next resistance level) and next thing I know the price jumped through my take profit. Ayos!

I will definitely do paper trading on this pair from now on and see whether I can day trade it profitably.