January 23, 2009
Weekly Trading Update - January 19-23
Well it's been an incredible week on the forex markets this week with huge price moves, and on a personal note it's been one of my most profitable weeks ever. As I've mentioned in previous updates, my main trading system has so far failed to trigger a trade, but this week it went into overdrive with signals being generated on the GBP/USD, EUR/USD and USD/JPY pairs, and best of all, they all turned out to be extremely profitable.
The Supertrend on the daily charts was red for these three pairs so I was only looking for short positions following downwards EMA crossovers on the 4 hour charts. The first downward moves occurred on Monday on both the GBP/USD and EUR/USD pairs.
Using the 2 hour chart to get a good entry point I entered a short position at 1.4750 first thing Monday morning after a slight pull-back. I then closed half my position for 50 points profit, as I normally do, and let the other half run. The price then raced down pretty quickly and I was absolutely delighted when it shot down below 1.4600, and quickly decided to take a very healthy profit of 196 points for this second portion of the trade closing out at just over 1.4550.
I felt fantastic at the time but I genuinely had no idea the GBP/USD would subsequently fall another 1000 points and in some ways it does make me feel quite sick thinking about how much money I could have made if I had really let the position run.
It was the same story on the EUR/USD pair. I went short on this pair slightly later on Monday morning after the EMAs crossed downwards and opened a position at 1.3241. The price fell nicely and I closed half at 50 before closing the other half for 122 points later in the day. This pair also went on to see dramatic falls but I'm not going to beat myself up about it because I still made some very healthy profits from these two trades.
I wasn't finished there though. The USD/JPY decided to join the party on Tuesday afternoon and crossed nicely downwards on the 4 hour charts. Again using the 2 hour chart for entry I opened a short position at 90.21. I initially closed half for 40 points profit and let the other half run. This one failed to fall much further so I had to hold this one overnight, moving my stop loss to break-even and setting my target profit at 100 points.
I was still holding this position for most of the next day, but thankfully after coming within a whisker of hitting my stop loss, it did eventually hit my profit target of 100 points and rounded off a very profitable week.
It could of course have been much better if I had held on to these positions for a lot longer, but these huge price moves are very rare and I honestly wasn't expecting them at all.
Anyway it's weeks like these where my trading system really earns it's money, and it certainly did that this week. If you would like full details of my main forex trading strategy, you can gain immediate access by subscribing to my newsletter above.