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.
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