October 30, 2009
Weekly Trading Update - 26-30 October 2009
I've been suffering from the flu this week and my computer has been restarting itself completely at random, but apart from that it's been a very profitable week on the whole. I opened three trades altogether with two decent winners and just one trade that didn't work out.
The losing trade was the on the GBP/JPY pair on Tuesday. After a period of consolidation it looked like the pair was breaking out to the upside. However it quickly ran out of steam and I ended up taking a loss of 60 points, after going long at 150.62.
The winning trades more than compensated for this loss, however. The first one was on the EUR/GBP pair on Tuesday morning. I was looking for a downward EMA crossover on the 4 hour chart because the Supertrend indicator was indicating a bearish trend on the daily chart, and subsequently went short after a slight pull-back at 0.9124.
I then ended up closing half the position for 40 points and let the other half run, moving my stop loss down to break-even. I was targeting 0.90 and this was eventually taken out the following day (although I could have held on a bit longer as it turned out).
The second winning trade was on the GBP/USD pair. I wrote a blog post a few days ago saying that a breakout was imminent on this pair, and hopefully it would be to the upside so I could open a position in the same direction as the overall trend, and this is exactly what happened.
I went long at 1.6408 yesterday morning and really wanted to bank some decent gains from this one. Therefore rather than closing half for 50 points, like I normally do, I closed half the position at 1.6500 and let the other half run, targeting 1.6600. To my surprise this second target was taken out shortly after, so this worked out very nicely.
So all in all it was a pretty good week, at least in terms of my forex trading results. There were also a few other crossovers elsewhere on the GBP/JPY, EUR/USD and USD/JPY but they all occurred in the early hours of this morning (in terms of the required entry point) so I didn't trade any of these crossovers. Not to worry though because none of them had any momentum behind them.
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