March 20, 2009
Weekly Trading Update - March 16-20
Well it's been a very quiet week this week from my point of view. The three major pairs that I trade (the GBP/USD, EUR/USD and USD/JPY) have all moved in the opposite direction to their long-term trend so therefore there have been few trading opportunities. In fact just the one trade was triggered in total and this one wasn't exactly a runaway winner either.
It was on the GBP/USD pair on Wednesday morning (several hours before the big Fed announcement). I really felt this pair was going to resume it's downward trend as soon as the EMAs that I use crossed over on the 4 hour chart.
After a textbook crossover I waited for a pull-back ideally to around 1.3990 or 1.4000 but it didn't arrive and so not wanting to miss out, I entered a short position at 1.3965. This trade went perfectly to start off with. I closed half my position for 50 points, as per usual, and let the other half run, moving my stop loss to break-even.
I was determined to hold on to this one for as long as possible because I thought we could potentially see falls to the 1.35 level at least, but frustratingly despite falling over 100 points the price quickly reversed as the day went on, and particularly after the Fed announcement, and I was automatically closed out at break-even.
So a pretty lacklustre week this week on the whole but every cloud has a silver lining because the lack of trading opportunities has meant that I've had plenty of time to prepare my end of year accounts in preparation for this year's tax return.