November 21, 2008

Weekly Trading Update - November 17-21

Well it was a fairly dull week this week with all the major currency pairs being stuck in a narrow range for long periods but I did manage to squeeze out some decent profits. I traded two positions in total, both on the GBP/USD pair with one being a losing trade and one being a winning one.

The first one, the losing trade, occurred on Tuesday evening. There was a decent EMA crossover on the 4 hour chart and I was expecting a nice downwards move. I entered a short at 1.4947 and set my target price at +50 and my stop loss at -40 to give it some breathing space. I would usually close half the position at +50 and let the other half run but the reason I didn't was because I had to keep this position open overnight so I wasn't able to keep an eye on it.

As it turned out it was irrelevant anyway because it didn't quite get to my 50 point target and worst still I woke up to a 40 point loss, which was not very pleasant.

Anyway the second position was a lot more profitable. The first crossover had failed so I was confident that the second one would come good and indeed it did. I went short early on Thursday morning at 1.4904 (a little later than I would have liked) using the 2 hour chart for entry after the EMAs had crossed nicely downwards on the 4 hour chart.

This time there was a strong surge downwards and I quickly closed half the position for 50 points and let the other half run. I mentioned on last week's update that I really should try and let winning trades run for longer whenever possible and so I let this one unwind for most of the day before closing out at 1.4750 and settling for a very nice profit of around 150 points.

So all in all it turned out to a fairly profitable week overall, which was particularly satisfying because for the most part it was very dull week.

If you would like full details of my main forex trading system, please subscribe to my newsletter above to get instant access.



Permalink • Print • Comment

Leave a Comment