Since beginning this diary at the start of the year I have been asked by a few individuals to describe how I transaction, so here it goes:

I trade the trend. I learned to do so with assistance from two very useful nigeriaforextrading members - Johnedoe and Jacko. This is my take on it...

Step 1 - Identify The Trend

the very first issue is to recognize the major trend. I use a top down egy to analyse the trend. Weekly, Daily, 4 Hourly.

An uptrend can be identified by higher highs and higher lows. A downtrend can be identified by lower highs and lower lows. Trendlines drawn across the highs and the lows should also help show direction.

Step 2 - Enter At A Discounted Price

After I know what direction I Need to trade in, I seem to enter at a good price. In an uptrend I am looking for a dip to put in in. In a downtrend I am looking for a summit to put in in. I use support and resistance and fib amounts (if confluence is discovered ) to guide me.

See attached chart...

I only buy/sell at round numbers (end xx00 or occasionally xx50). I identify places to trade using a 1 hour chart. I am searching for price to make a u-turn as shown on the attached chart.

The possible commerce at 1.4900 is just what I look for #8211; a wonderful small retracement; rejected at 1.4850 and rear up (buy) through 1.4900 creating the u-turn. Of course, not all transactions are as nice looking as that, but you get the general idea!

Stick onto a 100 pip stop loss and move it up as price goes (I tend to move the stop as another round number will get hit, but you might use a trailing stop which moves pip by pip, as it goes).

If price goes I shall also utilize Jacko#8217;s Anti-Hedge egy, whereby we let price move 50 to 100 pips beyond our stop loss then re-enter at the point where we have stopped out.

Any questions please ask. This is a learning process for me also so helpful advice is also valued!

Regards,

Dan

Please be aware that none of those transactions posted are signs or advice. They're only here as a list of what I have done - not exactly what I recommend to do!