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!

Tuesday Review

So I am going to start reviewing the market again today and setting up some orders for potential trades. I am going to start with the AUD pairs: AUD/CAD, AUD/CAD, and AUD/USD. If you remember, on Sunday, I didn't place orders for any of these pairs because the technical indicators were just not lining up properly. For Tuesday, I set up a buy order for the AUD/USD at .81394, this is a split different between S2 and my lower Bollinger Band (see my post from Sunday about split differences). I also set up dream orders for the AUD/CAD and AUD/CAD. Dream orders are orders that would take a miracle to actual hit. I set a limit sell on the upper Bollinger Bands for these two and have a T/P of 3 pips. These are super small movements, but with a large unit order, it would be like gaining 15 pips on a regular trade. However, these orders will almost never go through, that would be a 431 and 700 pip movement respectively in order for those orders to translate to a trade.

CAD/CHF... I am staying out of this one. It is currently outside of it's Bollinger Bands, which is a signal to STAY AWAY.

The EUR/GBP has some strong technical indicator overlay. I set up a limit buy and sell order for this pair. My buy is at .78085 (142 pips away) and my sell is at .79899 (53 pips away). Both of these orders are placed because the S2 and R2 line up perfectly with he lower and upper Bollinger Bands respectively.

EUR/USD is one of the most popular pairs in the world. It has been pretty volatile as of late, but I am placing a limit buy order at 1/21983 (307 pips away), which is a split difference order between my lower Bollinger Band and S2.

EUR/CAD I will be staying away from. It is outside of it's Bollinger Bands at the moment, which again, is a STAY AWAY sign... RED FLAG!

GBP/AUD is at the top of it's upper Bollinger Band, but the pivot points are way outside of the bands, so I am staying out.

GBP/CHF is looking good. I set up a limit buy order with a split different of S2 and lower band at 1.49977 (129 pips away) and a limit sell at the split different of R2 and upper band at 1.54928 (392 pips), which is a slight dream order. However, the reason I am comfortable with this limit sell is because R2 is still within the Bollinger Bands and S2 is the slightest hair below the lower band. I think this pair could give me a nice profit if it picks up. Especially with the news out of England today.

So... GBP/USD... WOW! It seems to have finally stabilized after 3 weeks now of staying steady after a 6 month decline. My lower Bollinger Band lines up PERFECTLY with S2, so I set a limit buy at 1.54563 (270 pips away).

NZD/CAD and USD/CAD are out of their Bollinger Bands, so I am staying out.

NZD/USD is a weird one the past few weeks. The bands are finally narrowing out, but the pivot points are still so far apart due to extreme volatility. I am going to set a limit sell only where my R2 and upper band line up. The S2 mark is too far below the lower band... actually S1 lines up perfectly, but I trade the level 2 markers. Limit sell at .80135.

USD/CHF... I traded this earlier in the week and made a nice profit and it only took 2 hours for me to make that profit. The R2 is a decent amount above the upper band. R1 is closer to it (despite being below it) than R2 is, so I am going to stay out of the pair. Maybe next week.

Lastly, the USD/JPY, what a ride this pair has been. I used to love this pair for being relatively stable. But, ever since late July/early August, this pair has been on a wild run. The last two weeks it has been come down though. If I would have held a trade from 3 weeks ago instead of selling for my loss, I would had been profitable again... but hey, hindsight is 20/20. I am placing a limit sell at 121.840. This would mean the pair would have to go back to it's 2014 high for this to pick up... 477 pip movement... needless to say, that won't be happening... but maybe haha.

Don't forget to get your Young Buffett gear.

#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

Be Wary of USD. Great Trades with NZD/CHF. WSJ News

Today was a great day for the NZD/CHF. great day for the NZD in general. I went long on the NZD/CHF pair this morning and within an hour and a half it jumped to my take profit of 44.5 pips. it was a decent little pop. I could have squeezed a few more pips out of the pair, but one of my top rules is to not be greedy.

I am still holding on to my dropping USD/MXN. There was an article in the Wall Street Journal yesterday about how the Mexican government is going to start selling back the USD in order to make the MXN go up in value. So I have a feeling that over the next month, there could be some major downward pressure on the pair if the Mexican government follows through. Also, the USD will start to have some major downward pressure in January.

Another article in the Wall Street Journal yesterday spoke about how the Fed is going to be dropping "considerable time" pledge. The considerable time pledge was that there is a considerable amount of time until the Fed will begin to up interest rates. They now believe that the economy is recovering so nicely that they don't need to keep selling cheap credit and they can begin to up interest rates. This increase of interest rates will definitely decrease the USD as many people will pull out of it due to higher rates. My hope is that my USD/MXN short will become profitable in mid-January when the Fed officially drops this pledge. Like I have said many times before, I am not one to trade based off of world news and policy, but sometimes when a trade is not going the way the technical indicators say, I delve into some economic news to see if I should get out for a loss or hold on for a potential profit. At lease shorting the USD/MXN I am making a few dimes every day from the interest (if you use Oanda like me) or the  rollS (if you use FXCM).

Anywho, that is my two cents for the day. I think it is a perfect time for people to short the USD/MXN. I may have shorted a bit soon, but I think it is still a good buy and I think doing it now would be the perfect buy... well the perfect sell haha. I think the Wall Street Journal nailed it when they said the USD is getting to large. It can't keep climbing. It has been for weeks now. Be wary fellow traders.

On a closing note. Feel free to follow me on Twitter. I just launched an account. @YoungWBuffett. I would love to build up a nice Twitter following. I will probably tweet about as much as I post here.

#YoungBuffett Out