Time to Set a New Habit

Account balance: $103,647.61

I checked into my charts--1 hour and higher--throughout the day, and not once were my criteria met. So I cheated again and switched to the 5-min chart.

I'm not proud of this, but I didn't once have a losing trade. I believe I traded three times based on what I saw on the 5-min chart and I posted a $1,000+ gain.

What worries me looking back on the day was that not once did I put in a stop limit or trailing stop loss option with my orders.

Oanda has by far the easiest order sheet. (So far loving Oanda--check them out!) I can put in the stop limit at the same time I set my sell/buy order. It may be a case of simply not being in the habit of doing so. Or perhaps I justify not putting in a stop limit on my 5-min chart orders because I know I won't be in them for long. In fact, on all three orders today, aside from switching windows on my laptop af few times to check email, I never once left my trades. Those are just excuses though. Even if I intend on staying "near" my trades, I should have my backup parachute ready to go.

That will be my goal for tomorrow. I still haven't decided if I'll set an overnight trade. The longer charts (1 hour and above) don't show any promise. The Bollinger Bands are trending horizontally for the most part, and if they do trend up or down, it isn't convincing so in either direction to induce me into a trade while I sleep.

So Far So Good ... With a Little Bad on the Side

Account balance: $102,178.11.

Don't be fooled. I actually got off to a slow start. I traded a small bundle--going short--and it didn't work out so well. I lost $77 of my $100,000. I knew immediately exactly what I did wrong. I lost sight of my strategy.

I was stopped out of that trade overnight, while I was sleeping. That's right, I successfully adminstered a stop loss (something I often refer to as a parachute or safety net). I shouldn't be "thrilled" I was stopped out of a position for a loss, but considering the issues I had with FXCM's stop loss oders, I am moderately pleased.

I didn't put in another trade order until this evening. Has anyone else noticed the slowdown when the stocks market closes? I can't stand those turtle ticks ...

Not feeling comfortable with the 1-hour chart, I took a look at the 2-hour picture. (For those of you familiar with my rules, one item on my "no-no" list is not to go short-term until I've mastered the long-term.) I liked what I saw. The price had just crossed the upper PSAR dot, the Bollinger Bands were channeling upward, and the RSI just reached a new high value. I put in a big order this time--1,000,000 units--going long. The result was around a $2,000+ profit in a little over an hour.

Cha-ching!

Of course I felt cocky, and of course I broke my previously stated rule. I switched to the 5-min chart to see if I could eek out a couple hundred more bucks in profit. My gamble paid off, and I got my balance up to the number listed above. What can I say? Being bad sometimes results in something good.

I haven't decided yet if I'll put in a position overnight. The 1-hour chart and its older siblings aren't looking promising either way.

Speaking of siblings, my sister's birthday is tomorrow! Perhaps in her honor I'll make a killing tomorrow ...

A New Demo Session Begins

After some quick Google research, I decided my next Forex trading demo account would be with Oanda.

I set my first trade a few minutes ago, and it just went through. I'm short the EUR/USD and was able to figure out and set a limit order.

My first position isn't using much of my capital. I was given $100,000, and my 10,000 units takes up $650.

It feels great getting back in the game after my short absence!

One Demo Session Comes to an End

Wow, it's been a long time since my last post. Apartment and job searching took priority over my self-imposed Forex learning curriculum. Stress was also a factor. It's been quite a few years since I've heavily job- or apartment-hunted, and to do both simultaneously certainly wore me down. The good news is that I found an amazing apartment. My landlord and I hit it off when we met for a showing. The unit is located in a better area of my neighborhood, and it is cheaper and bigger than my current apartment. It's the kind of place I can see myself making a killing in Forex trading!

Final account balance: $59,241.43

A sharp reversal two weeks ago caught me off guard, and I wasn't able to get the balance back to my former glory $80,000+ days.

An 18.5% gain in 30 days is nothing to sneeze at, but truth be told I'm not convinced my ending balance was the result of strategy. Luck certainly played a role, and while it would be great to go through life lucky and successful, I'd like to have a little more control when it comes to the outcome of my investments.

FXCM had a great platform, and I was quite comfortable trading on it, but I'm not entirely sure it's the right place for me. My 30 days are over and my sales rep "Paul" has been calling frequently asking me if I'd like to invest some real money, open a real account. I told myself when I first started I wouldn't invest real money--no matter how small--until I was confident in my trading and strategy.

I'm not convinced my Forex trading abilities are up to par yet or that FXCM is my best option should I choose to open an account (the leverage on those bundles is something of a turnoff). So it is my goal now to seek out another trading platform demo.

I found FXCM when I signed up for CNBC's Million Dollar Portfolio Challenge. I didn't win (or even post a profit with my fake money), but it did introduce me to that particular online broker. I can't name any other broker, so I'll have to resort to a Google search. Ideally I'd like to find a trading platform not attached to a broker that's free, easy, and will allow me practice without any time limitations. I doubt one exists, but I'll let you know if my instincts are wrong.

By the way, did I mention how much I like the charts on Daily FX? FXCM's charts were a little crowded. Sometimes I could barely distinguish a PSAR dot from a candlestick. Frustrated, I quickly switched over to Daily FX--which I used during the Portfolio Challenge--and was using that as my viewing chart and only using FXCM's charts to execute trades.

So one demo session comes to an end, and the next one is soon to begin ....