November 20, 2009
Weekly Trading Update - 16-20 November 2009
After being very ill last week, I'm pleased to say I'm now back to normal again, and thankfully I've returned to the markets and made some decent profits this week. I've traded two positions altogether and both of them worked out reasonably well.
I've already mentioned one of the trades in a recent blog post, and that was the GBP/JPY trade. This was a pure breakout trade. I was waiting for the price to break either upwards or downwards after a long period of consolidation, and it actually broke downwards early yesterday morning.
I used the 4 hour chart for my entry point and went short at 148.95. I then closed half the position at 148.00 and let the other half run, targeting 147.00. However I decided to lock in some profits and moved my stop loss to 148.00, which was subsequently taken out. So frustratingly I missed out on some additional profits when the price did break through 147.00 earlier today.
Another trade I did was on the GBP/USD pair. This was a more typical 4 hour trade, except for the fact that I went against the trend on this occasion. It's not often I do this but I just felt that this pair was due a retracement, and so went short when the EMAs crossed downwards.
I opened a position at 1.6750 on Wednesday evening and let it run overnight with a 40 point stop loss and a 100 point profit target. Neither of these targets were triggered overnight but I was later filled at 1.6650. I really should have let it run but I was being very cautious this week for some reason.
Indeed I was going to go short on the EUR/USD on a few occasions because this pair is also starting to look overbought, but I chickened out because I didn't think there would be a great deal of momentum behind any downward moves.
Not to worry though because I've still made a decent enough profit, and to be honest I'm just grateful I'm back to full health again after last week.
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