USD/CAD and EUR/JPY Live trade update. . .

So far FX trading has looked very easy. Luckily I've decided to start this blog just at the right time and a great setup came our way! If you are not new at trading FX you will know that it does not always work out this great. If you are new and have learned something. . .well that's great because that is my goal - to help anyone interested in learning. Remember though that risk control is of utmost importance if you do decide to enter the market. Never risk more than what you are comfortable losing, period.

The above picture shows my current position in U/CAD and E/J both have moved very nicely in the predicted direction and both have profits locked in. Currently I am using a trailing stop (TS) to follow the price action. There are more than one way to use a TS. For instance if you get into a trade and it moves nicely in your direction you may want to manually adjust your trailing stop. When you do this you might choose to set the stop behind resistance or support areas that price action (PA) has recently passed - the idea is that once PA has passed such an area it will have trouble bouncing back to take out your position. Another way to use a TS is to set a TS based on pips in profit. You can do this on your trading platform if you are using MT4 (and many others). What I have done in this instance is use a TS based on pips in profit using a distance determined by an indicator called ATR. ATR stands for 'average true range' and can be used as gauge to tell you how many pips the market is moving at any given time. ATR calculations are really not that important but if you need to know just look on the net and you will easily find how it is calculated. As I said I am using it as a gauge of market movement at any given time. The whole point of this is that I have been using the daily ATR(14) as a TS for the past while to try and let the two trades run as far as possible before taking profit. You will see in the above picture that this method has served me nicely in this case. . . one note on using TS on the MT4 platform - your computer must be running as the trade progresses, if not your TS will not be updated!

Look for good trading setups and control your risk. . .