EUR/USD - 10/10/10 Weekly Forecast

http://www.fxinstructor.com/blog/eurusd-weekly-summary-october-09

Forex @ DailyFX - British Pound 16000 Double Top?

Forex @ DailyFX - British Pound 16000 Double Top?

Forex @ DailyFX - Euro Doji – Support at 13640

Forex @ DailyFX - Euro Doji – Support at 13640

Forex @ DailyFX - AUDUSD End of Year Forecast

Forex @ DailyFX - AUDUSD End of Year Forecast

DOW Jones rallied 4% (400+ pts) on 11 May 2010 following the one trillion euros bail out plan announced by the ECB (Euro Central Bank).

However, the very next day the market dipped 2-3% (eg. HSI, STI) on concerns that the rescue package may not be enough.

Looks like we have to wait a little longer for the dust to settle before entering the market.

Volitility Index (VIX)

The VIX is inversely proportional to the DJIA, S&P500 and NASDAQ.

http://data.cnbc.com/quotes/VIX/tab/2

DBS BNP Warrant

Bought : $0.19 (based on technical correction)

To sell when the signal appears on MACD.
Need to take note of the weakening of STI index. It is near the bearish crossover (sell signal).

Genting SIN

Bought : $0.905 (when buy signal appears on MACD)
Sold : $0.945 (no sell signal on MACD)
Mistake :
1. Did not trust the charts. I was influenced by the market sentiments and did not have a clear head when I made the trading decision.
2. I was also apprehensive as I trading Genting in Jan and lost 6cents on the share. I did not use Technical Analysis at that time.

Reflection:
1. Need to wait for the sell signal from MACD in future.
2. Need to improve my trading technique. To look for a suitable course to enhance my skills.

Reference Book

http://www.amazon.com/Mastering-Currency-Market-Strategies-ebook/dp/B002XLYOMO/ref=sr_1_1?ie=UTF8&s=digital-text&qid=1269138067&sr=8-1

Mastering the currency market - Forex strategies for high and low volity markets

by Jay Norris / Al Gaskill/ Teresa Bell

My Trading Journal

1. Market traded
2. Direction traded from
3. Date/time
4. Signal used
5. Tie frame traded
6. Trend or countertrend

My Trading Plan

1. Method
2. Charts
3. Calendar of events
4. Overlays (support and resistence, trendlines)
5. Indicators
6. Setup
7. Signals
8. Exit/Stop loss

Steps to be a better trader

1. Read for information (books)
2. See the information used in an example
3. Execute the plan, using the information and instruction in a simulated env (back-testing)

Risk Management

1. Set stop loss orders

2. Exiting position - use the equal but opposite approach

Trading Modes/Timeframe

1. Position/ End of day trading
2. Swing trading
3. Short term / Day trading

Trading Psychology

Qualities of a successful trader

1. Patience - Loose your opinion (follow the charts), don't loose your money

2.Discipline
- Evaluate yourself and identify your weakness.
- The only goal f a successful trader is to follow the trading plan.

3. Psychology
- be a good listener
- thoughtful, very patient, humble, sensitive

Source : www.trading-U.com

Trading Techniques

Order of operation

1. Individual candlesticks behavior

2. Stochastic cross

3. Trendline break

4. Hammer to put in higher low

5. RSI 50 cross

6. Higher higher and intermediate-term trendline violation

7. MACD zero line cross

Guoco Leisure

1.Mar 19 - closed at 0.70.
2.Breach both 25d & 50d MA.
3. RSI reached 70%
4. MACD (blue) reach zero mark.
5. Short term support at 0.68
6. Action : to buy on weakness on Monday, 22 Mar
7. US closed lower on 19 Mar, good chance to buy in coming week.

Genting Singapore - Technical Analysis

MACD : The blue MA line has crossed the red signal line, signifying a buy signal

Stochastic : There is a bottom out at the lower support level of 30%, signifying that it has moved up from a over-sold position.