Page 150 - Ultimate Guide to Currency Trading

Trading with a smart phone or iPad can allow you to get out of your office once in a
while. Don't fall into the trap of thinking that you can use a handheld device as your only
ALERT form of managing your trades. You will still need to monitor your account from the full-
featured trading software every now and then.

Knowing that this is the answer, you make a mental note to closely monitor the AUD/USD pair.
Your broker has recommended accumulating any amount of AUD/USD at prices near parity, or near
1/1. The broker's report also states that the pair will most likely have a hard time getting above 1.045.
Overall, for the short term you will be looking to get into AUD at these levels. The trade is still a good
carry trade, and the pair continues to react well to positive news. It is just that this overnight's news
put a slight damper on its upward movement.

Continuing Trading/Rolling Over the Profits

After you have read through your notes, news, and brokers' reports, the next thing you need to do is
to decide if you would like to roll over your profits. Since most of the action in the U.S., European, and
Asian stock markets has worked its way through the system, you feel as though that you should look
elsewhere to make some money in the afternoon and into the next morning.

Scanning through your broker's reports for new ideas, you notice that a report was issued last
weekend that discussed the GBP/USD. The report dis-cussed the heightening inflation situation in the
island nation, and it recommended building long GBP/USD positions at anything under 1.600.

You switch to your technical line chart with a one-hour time frame. You notice that the GBP
did not benefit from the run-ups in the market to the extent that the SEK, NOK, and AUD did. With
further checking you notice that the GBP/USD pair is at 1.587. You decide to buy into the pair at this
level.

Dividing your account into thirds, you decide to build your position by taking three bites at the
pair. You decide that you will buy in three equal parts with the first at this price level, 1.587. You go
ahead and place your first trade of 1,500 units of GBP/USD. The best thing to do now is to close out of
your trading screen and continue on with going about your business for the day. You check in forty-
five minutes later to see how your pair has been doing. You notice that it has gone down just a bit, and
your position is down $3. Since it is in the middle of the afternoon New York time, you know that
there will most likely not be any big price moves in either direction. With this knowledge, you buy in
your next third at this price level. Knowing that you will be busy for the rest of the afternoon and into
the night, you enter in a limit order that will purchase the final third at a pre-set price. You know that
this limit order will only be filled if that price level is met, and your trading platform will then
automatically fill the order. You make the price to be the same distance from the second order as the
second order was from the first. Before you submit the limit order, you place your take profit for all
three trades at 1.63. This rate is intended for you to make good money, even if the trade takes a bit of
time to finish with a profit. The last thing you do before you quit trading for the rest of the week is put