Holidays

As many of you followers already know, I have been on a trading break due to the holidays. I want to wish you all a belated Happy Hannukah and a belated Merry Christmas. This week is the New Year! I am very excited for 2015. In order for me to stick to the 7 year plan, by 12.31.2015 my account will need to be at $615.28, which is very doable. Remember... the plan is $100 to $100M in 7 years. This means 15% a month. Compounding interest is an amazing thing. So, for the week of 12.28.2014, I will ONLY be placing my 2 days trades on Sunday and not placing my intraweek trades. I have already hit the goal for December 2014, so there is no need to not take my vacation. So for this half-week lineup check out the video below.

As I stated in the video, this will be the last time I simply record my orders being placed. I will be creating some educational videos for my Youtube channel and also creating some videos of my active day trading with the micro-strategy. What this means is in the weeks to come, I will be placing all of my orders, the why's and the thoughts behind each one on the blog again. Let me know which is better for you, which you like better... video or blog.

As I also stated in the video, please leave a comment, let me know if you have educational questions, do you understand Bollinger Bands, Pivot Points, etc.? Do you have questions about my system, orders, account balance, etc.? Let me know. If you don't want to leave a comment, please feel free to use the contact me form on the right hand margin.

Happy trading and HAPPY NEW YEAR!

#YoungBuffett out!

Micro/Side Strategy

So, while my main strategy is my money maker and is mostly automated... I just need to do a 15 minute analysis twice a week and place some 2 day orders... I have been working on a micro/side strategy. I think I worked out all of the kinks in a demo account and going to see how it does with micro lots (50-150 units at a time). I did it tonight with 11 trades... all of them were correct. Took me 1 hour. I was using such small units that my total profit was about 50 cents lol... but if I were to use larger trades like 1,000 or 5,000 units then we all know that good ole' Uncle Murphy would have come to visit haha.

Anywho, this little strategy is simple. I will be doing a 15 minute demo of it tomorrow on my Youtube channel. So be sure to check that out. I will post the video here tomorrow too.

For those who missed my quick forex overview today, check out the video on YouTube... or watch it below:

Happy trading. #YoungBuffett out.

Week of December 14, 2014

It is 4:00 and I am sitting down to analyze the charts for the week. This week I will tell you which orders I placing and I may even place an image or two :) I will also tell you which pairs I am not going to place orders in. I analyze charts twice a week... Sunday and Wednesday. I set up my orders to expire after two days. 

This post may be more technical than my normal posts, but will also give you a little inside into how my mind works... so enjoy, this may be the only time I give you a snippet into my forex strategy. To start with, I trade using the 1 week charts, having my Bollinger Bands, SMA, EMA, and WMA on the chart and then I draw my pivot points over the weekly chart too. 

So let's start with the AUD/CAD, AUD/CHF, AUD/USD, GBP/AUD, and USD/CHF. I am not placing any orders in any of them today. The pivot points are way below the Bollinger Bands, which means that the technical indicators are not lining up. To explain what I mean, see the image below, which is a chart of the AUD/CAD and the same thing is happening with all of these pairs. 

Next is the CAD/CHF. I will be placing a limit sell order for this pair, but no limit buy. The reason is because my R2 and my upper Bollinger Band line up almost perfectly. This means to me that if the pair manages to jump that high, it will hit that ceiling and have to drop back down... at least a few pips, which is all I need in order to make a profit. For the USD/JPY, I placed a very similar order. However, R2 was slightly above my upper Bollinger Band, so I split the difference (see my last chart for what I mean on splitting the difference.) Here is the CAD/CHF chart:

Next we come to the EUR/GBP. This is one of the most stable pairs that I trade. Typically they are pretty similar in movement because their economies are so closely related and intertwined. This pair stays within their Bollinger Bands almost always and typically adhere to their pivot points. So I have placed  limit buy AND a limit sell with this pair. I also placed limit buy and limit sell orders for the NZD/USD due to the exact same technical indications. Here is the EUR/GBP chart:

The EUR/USD, EUR/CAD, GBP/CHF, GBP/USD, and NZD/CAD are all very similar in my CAD/CHF except I am placing a limit buy only, my S2 is a tad below the lower Bollinger Band, so I split the different and placed a limit buy order. The only difference is the GBP/USD (the lower band and the S2 are perfectly lined up.) Here is the EUR/USD chart:

So, that is my outlook for the week, or at least the first couple of days. If you are wondering about the USD/CAD, I am actually short in the pair currently and up a few pips, waiting for it to hit a 12 pip profit then my T/P will be engaged. I have also been asked about my use of the MACD... well I don't use it too often. Honestly, I use the MACD when I am already in a trade and my T/P or Stop Loss has not been engaged for a couple of days, so I look at the daily MACD to see if I should just get out or hold on.

Happy trading this week. 

#Young Buffett out. 

My Biggest Mistake

So last night before going to bed, I forgot to set up a stop loss on a trade... the EUR/NOK. I woke up this morning to learn a very harsh lesson... very harsh indeed. A 69.5% loss... crushing and heart-breaking. Like the blog says.. forex has its ups and downs. While I just spoke about money management only a few posts ago, I failed to do so. I believe I identified my mistake... obviously no stop loss, but I was trading too many pairs at one time. I have narrowed my list of trading currencies to a smaller number of 13 currencies. I am also going to make narrower trades... meaning all signals MUST line up and I will make less trades but larger trade.

Tough morning. But, in the words of Rocky, "Nobody is gonna hit as hard as life, but it ain't about how hard you can hit, its about how hard you can get hit and keep moving forward, how much you can take and keep moving forward, that's how winning is done."

#YoungBuffett Out

Laid Off

Well, yesterday I got laid off, so I didn't get a chance to make a post because I have been so busy looking for a new job. It is honestly a blessing, now I can hopefully find a job investing for a firm until my personal accounts are large enough for me to just live off of my monthly 25%. 25% of $1M is a lot better than 25% of $10K.

But back to my trading. I have been having a great month so far. Today I made 1.22%, only had a couple of small trades. The USD seems to have stalled out right before the non-farm payroll report comes out tomorrow. I don't typically use economic data as a factor in my trading, but the non-farm report is typically significant.

The big movers I see ending out the week is the EUR/NOK. I know this is an off currency pair for most people, but I love trading it. This pair can move 1500 pips in a single day. While the pips aren't really worth as much, the volatility allows for some great quick profits. I shorted the pair at 8.75500. The pair is 8.73890, so it is heading in the right direction. I have a T/P set up at 8.6745. This will give me a nice little boost in my account.

This week, my biggest movers were AUD/CAD, USD/JPY, GBP/CHF, EUR/USD, and AUD/NZD. I made some other trades that I took smaller 10-15 pip gains for, but all of the aforementioned trades were anywhere from 40 all the way to 100 pips int he AUD/CAD (which I actually rode up 100 pips and back down 40 pips).

This week has been a good one, I am a little above my goal right now, which is a good feeling, but as we all know, the FX market can be unforgiving and I may be up 10% today, but down 50% tomorrow... well lets hope 50% is an exaggeration lol... as long as you practice good money management, you won't have losses like that.

#YoungBuffett Out

Vacation

So I have been on vacation for the past week and today is my last day of vacation. I placed a few orders before I left and then I logged into the account halfway through my vacation and placed a few more orders. It has been nice, I have made just as much money as I would have and I have only been spending about 1/4 of the time doing it. It has been great. The AUD has been great to me over break. I made 2 trades in the AUD (longing it) and made a 5.5% account gain. In just a short 4 days (6 days, bur 2 were the weekend) I made a total of 8% flat. It has been great. So my account is way on schedule, actually a tad ahead of schedule. I will make a larger post tomorrow that covers more of my trades and more of my thoughts on the different currencies.

#YoungBuffett Out