Almost Back to Even ... With the FOREX Account

My account balance now reads $99,049.35! That $100,000 is in reach.

I'm tempted to try a few short trades to see if I can inch my way forward. Patience is key though. I don't want excitement to overrun my strategy and send me further down into the hole.

Taking It to the Stocks

Tried the EMA breakout strategy with some hypothetical trades in the stock market.

I'm not losing hope, but so far I don't seem to have any winners.

I "purchased" JMBA at 2.02 this morning. It now sits at 2.01. I was hoping for another big move up. Everything about the setup looked so promising. On the day timeframe, the price crossed the 100 EMA, and it was hugging the upper Bollinger Band. Perhaps today was merely a correction from yesterday's big gain and tomorrow I'll wake up to some good news!

I also "purchased" a stock called CIGX. It had the same setup as JMBA, except the price was not hugging the upper Bollinger Band. I entered at 3.56, and it currently sits at 3.40. I go back and forth on what I should do with the stock. I'm not confident it's poised for huge breakout, so more than likely I place a sell order for a meager 2%-3% gain.

Almost Back to Even

I closed out of the EUR/USD shortly before 1 p.m. PST. I originally sold on Sunday evening, only to go deep in the hole before finally posting a gain. I added $2,000+ from that trade, which brings my balance to $99,844.57. Almost back to even!!

Looking at the various time frames, it's hard to tell if the EUR/USD will continue going down or whether it will have a rebound and then go down.

The Bollinger Bands are starting to chanel downward on the day time frame, which is a sight for sore eyes after the horizontal trend of the past week. I simply don't trade well in range.

I placed another sell (short) order for the EUR/USD. If it drops below its previously low of  1.2911, I'm in!

Taking It to the Stocks!

It may be premature, but I decided late last week to try out the EMA 100 strategy on stocks.

I'll keep you posted on how that goes.

Watching the S&P

I'm no expert. Clearly! But I noticed these past few months of pretend trading in the FOREX market, that the dollar actually gains strength when the S&P 500 drops. (It's not suppose to be the case, though. Read here for more information.)

My charts lead me to believe the S&P may be in for another pullback. (There's a clear RSI divergence.)

I'm banking on that happening, which is really the only reason I'm holding the EUR/USD short.

Keep pushing on that lower Bollinger Band buddy!

Holding ... On

Sold a new batch of the EUR/USD on Sunday--when it opened up below the lower Bollinger Band. I was so sure it was going to go down, but it rallied up to the 1.3050 level before coming back down below 1.3000, where it clearly belongs. I was too afraid to see how much in the hole I was, but finally got the nerve to look this afternoon. I'm $2,000 in the hole on this particular trade, but I feel confident it will continue heading down.

The expert analysts at DailyFX.com said this rebound was a good time to enter into a strong sell position.

EMA Breakout Strategy

Here's a copy of the EMA Breakout Strategy I'm currently using:

Sooner or later all Forex traders begin experimenting with different EMA settings.
Quite often very interesting combination can be spotted. Here is one Simple Forex system based on 50 EMA indicator.

Any currency pair.
Time frame: 90 minute or 3 hour chart, 4 hour chart
Indicator: 50 EMA.

Entry: watch for a candle to pierce 50 EMA and finally close above (to enter Long) or below (to go Short). Enter with the second candle after it makes 5 pips higher than the previous one.
Exit: not set.
Stop loss order: 15 pips below 50 EMA.

This strategy and others can be found on forex-strategies-revealed.com.

I didn't realize it until now, but the author of this strategy, Edward Revy, is also the website creator. This newbie is impressed!!