I was asked by the online broker easy-forex to maintain a forex trade diary and evaluate the easy-forex trading platform for the week of May 25-29.

Upon accepting the challenge, easy-forex set me up with a live account with $200 in capital. The process was quick and by Monday 25th May I was ready to start trading.

easy forex trading platform

easy-forex webtrader

Forex Trade Diary

Some rules for the week

Since $200 is not a very large amount of capital to trade with I decided on some rules to keep my overall trading restricted and extend the chance of success.

First of all, I decided that in order to avoid overtrading and incur large transaction costs I would limit my trades to no more than two per session – with a session referred to as Europe, US, or Asia. By doing so, I would hold trades for longer and give trades time to develop into winning trades. I decided I would mostly look at the half hour or hourly chart in order to make trading decisions.

My second rule was to only trade using the minimum lot size available. The way it’s set up on easy-forex is that you can trade mini lots on many products but the tightest stop you can really get away with is $25, equating to a maximum (guaranteed) risk of 12.5%. This is too high for my liking so I only used the lowest risk sizes available.

Monday 25 May

On Monday 25th May, most developed markets were closed due to a public holiday in the UK, Germany, and the United States. No trades were made and I kept an eye on fundamental news flow in order to plan the following day’s trades.

Tuesday 26 May

After reading some research that shows European stock markets often climb higher whenever there is a US holiday – due to lack of news items and institutional traders across the pond – I decided that there might be some pent up demand in European stocks when they opened on Tuesday after the public holiday.

After loading up the webtrader platform I bought 0.02 lots (the minimum size) of DAX (Germany’s main stock index) at a price of 11783 very near the open.

forex trade diary dax

I was encouraged to see the DAX move sharply higher in early trading but unfortunately I failed to act quickly enough and the market reversed even more quickly. The first trade stopped out for a loss of $27.28.

Later in the day, I took a look at USD/JPY which had been in a strong upward trend for the last few weeks and was trading above its key moving averages. Since currencies have a tendency to trend over short-term periods (much more so than stocks) I looked out for an opportunity to go long and join the trend.

Just as the European session was winding down and US traders waking up, USD/JPY broke out past the $123 barrier giving a potential signal to go long. The currency pulled back and I entered a  long position at a price of 123.018. This trade was held for several hours and also overnight.

Once my USD/JPY trade was in profit, I decided to take an additional position in US stocks as I was looking for a positive session after the public holiday. I bought 0.02 lots of SPI at a price of 2,104.75. The trade moved higher so I brought my stop loss up in order to manage risk. The trade eventually closed out for a $9 profit.

Tuesday P/L: -$18.28

Wednesday 27 May

On Wednesday I continued to monitor my USD/JPY trade which I had initiated the day prior. I eventually cashed out the trade at a level of 123.494 for a profit of $37.60.

Forex trade diary - USD/JPY chart

No other trades were made during the day.

Wednesday P/L: +$37.60

Thursday 28 May

Thursday morning I decided to watch the EUR/GBP currency pair which had shown expansive price movement throughout the previous day.

When trading currencies, my preference is to find the strongest performers and attempt to join the trend at breakouts or short-term pullbacks.

Taking a look at the economic calendar, it was clear that there were no important news items out of Europe that I felt would be bearish for the euro. Following the loose monetary stance from the ECB I was expecting good economic reports out of Germany and I felt that would be bullish for the currency.

When EUR/GBP broke a previous high on the hourly chart I entered long at a rate of 0.71007. I closed the trade out around four hours later for a profit of $30.85.

At roughly the same time, I decided to enter a long position in Germany’s DAX at a rate of 11,735. Once again, German volatility was against me and I closed the trade for a $17.69 loss.

Later in the day, I attempted a trade in the Nasdaq but closed it shortly after as the market had already experience a sharp rally and I considered I might be ‘chasing’ the trade.

Thursday P/L: +$12.56

Friday 29 May

I was watching the technical levels in GBP/USD on Friday morning and noticed the currency was weak in early trading. Soon after the open GBP/USD broke under it’s pivot level so I sold the currency pair for an average price of 1.53076.5. Two hours later I bought back the currency for a $19.72 profit. However, the currency did in fact move much lower than that.

Forex trade diary GBP/USD chart

The Nasdaq ended up having a strong day on Thursday and there was some big news in the mergers and acquisitions space with Avago purchasing Broadcom in a $37 billion deal.

I felt this optimism would carry over into Friday’s session and saw no news items on the agenda that could thwart the upward bias. I bought 0.02 lots of NDQ at 4544.50, however, the trade rarely saw a profit and came close to hitting my stop loss. I closed the trade out several hours later for a $2.35 loss (as markets were winding down).

Friday P/L: +$17.37

Overall, the week’s profits came to just under $50. During that time, the easy-forex platform was intuitive, responsive and reliable.

Total Week P/L: +$49.25

The Following Week

I have decided to keep the account active and will continue to document the progress of the $200 account and see if I can get the fund up to a larger amount.

Early in the week, some profitable trades were made in GBP/USD and AUD/USD, however they were balanced out by some losing trades in EUR/GBP and gold.

As of Tuesday 9 June, a recent unprofitable trade in AUDUSD means that the account now stands at just $197.80, below the initial starting capital.

I now remember how random day trading really is, and why I don’t do it often. It’s a very difficult to trade popular products successfully, especially with a small account.

 


Summary
My Forex Trade Diary For The Week Of May 25-29
Article Name
My Forex Trade Diary For The Week Of May 25-29
Description
I was asked by the online broker easy-forex to maintain a forex trade diary and evaluate the easy-forex trading platform for the week of May 25-29.
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