June 19, 2009

Weekly Trading Update - 15-19 June 2009

Well there have been no runaway winners this week (although that could be about to change) but I've still just about come out ahead. The major problem was that the GBP/USD, EUR/USD and USD/JPY pairs have pretty much traded sideways this week.

There were four trades in total - three on the GBP/USD and one on the USD/JPY, and although the EUR/USD did generate a couple of trading opportunities, I couldn't get a good entry point on the first trade and the second one has happened far too late, ie Friday evening, for me to take an interest.

Okay so let's start off with the GBP/USD trades first of all. The first upwards EMA crossover occurred on the 4 hour charts on Tuesday and I went long at 1.6402. I managed to close half the position for 50 points but the second half of the position was stopped out at break-even.

The same thing happened again on Wednesday evening. I went long at 1.6396 after the EMAs had crossed upwards on the 4 hour chart, closed half the position for 40 points this time as it was getting late, moved my stop loss up to break-even (and my overnight target price to +100), but was stopped out once more.

Usually in these situations the third crossover will almost certainly come good and that looks like being the case this week. The breakthrough happened this morning (UK time) and I went long as soon as the price pulled back to 1.6418. I started to regret this as it went 30 points against me, and was preparing to take the loss if it went 50 points into the red, but thankfully it turned around and has since rallied strongly. So I managed to close half my position for 50 points and I'm still holding on to the second half of the position going into the weekend.

I think I'm going to go for the really big points on this one because if we can break through the two recent highs (the highest of which is around 1.6663), then the price could easily rise to 1.70 in no time at all.

The one other trade this week was on the USD/JPY pair and this one did actually go against me. I had been waiting for the EMAs to cross upwards on this pair all week, and when they finally did earlier today there was absolutely no momentum behind the move. I went long this afternoon at 96.80 but the price headed down pretty rapidly and I ended up taking a loss of 42 points.

Overall though it's been a decent enough week, and if the open trade on the GBP/USD comes good next week then I could potentially be looking at another 500 points profit, but we will have to wait and see if this works out or not. It could just as easily fall back to my break-even point of 1.6418.

(If you would like to read all about my main 4 hour trading strategy, you can access it when you subscribe to my newsletter. Simply fill in the short form above).

Oh and by the way I don't normally mention my various short-term trades but I've been having some great success trading two of the three methods included in the Forex Income Engine 2.0 course. I've been trading the 15 minute charts and I will often add at least 30 points to my trading pot every day, albeit with smaller stakes. So I can definitely recommend you check it out while they still have a few copies remaining.

Anyway have a great weekend. I'm looking forward to next week already because of the open GBP/USD position which is essentially a free trade that could yield several points profit, and because Wimbledon gets under way. As an Englishman I shall be cheering on Andy Murray of course and we can't really lose because if he wins he's British and if he loses he's Scottish. 

 

 

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