Starting off with a Bang

Well there couldn't be a better way to start-off this blog than the trade that happened the night of its inception. Before I explain my good fortune last night I thought it would be good to give a little background.

First-off I use FXCM as my trading platform. I've tried Forex.com and can assure you that FXCM is light-years ahead. The main benefit I find to FXCM is their software. The FXCM trading station has a clean, easy-to-use interface. I've paid as much as $50/month for charting software but with FXCM they provide an excellent charting package - free to their customers.

I am a technical trader, however rely heavily on analyst opinions to spot my entry points. I use DailyFX Plus (also a free service with FXCM) and keep a very close eye on the headlines. With Forex day trading (or night trading) you can miss a potential opportunity in the matter of 5-10 minutes. I find good potential trades and then do the technical analysis to determine if I think there is some potential.

The two main indicators I use are the RSI and MACD. If you are not a technical trader there are million of resources online to teach you the basics.

Last night I was lucky enough to catch a dip in USD/CAD and buy right before a nice breakout. Below is a chart of the trade including my entry and exit points. Key things to look at is the low RSI at the point of trade initiation and the crossed lines seen in the MACD.