January 22, 2010
Weekly Trading Update - 18-22 January 2010
This will be my last trading update for a while because I'm off to Thailand next Wednesday, and I'm pleased to report that I've ended the week on a high. I'll start by telling you about the trade that was carried over from last week first of all.
You may recall from last week's update that I was planning to hold on to my short position on the EUR/USD pair (taken at 1.4429) until it reached the 1.4200 - 1.4250 area. Well thankfully it did continue falling and I was eventually closed out at 1.42 in the early hours of Wednesday morning.
Apart from that there were four new positions that I opened. I opened one short position on the GBP/USD pair, and went long twice on the GBP/JPY pair and once on the USD/JPY pair.
The GBP/JPY EMA crossovers both run out of steam fairly quickly and I ended up taking losses of 50 and 45 points on this particular pair. Thankfully I was luckier with the USD/JPY trade because my 40 point stop loss avoided being taken out, and I later went on to bank profits of 40 points with the first half of the position and another 40 points with the second.
The GBP/USD was the most successful trade. This was a textbook EMA crossover. The daily Supertrend was red, indicating that I should look to go short on the 4 hour chart, and it had been quite a while since the last downward EMA crossover. So everything was in place for a decent move downwards.
I went short at exactly 1.6300 after the EMAs finally crossed downwards on Wednesday morning. I then closed half the position for 50 points and let the other half run. I was actually stopped out at break-even with the second half of the position, but I decided it was worth going short again after the price subsequently dropped, and I went short at 1.6250 this time. This gave me another 50 points, and I eventually exited the second half of the position at 1.6150 to end the week on a high note.
That may well turn out to be my last trade for a while, but I shall probably have a look at the markets on Monday and Tuesday to see if there's any decent trading opportunities. I will probably write another blog post at some point as well if I have time (sorry for not posting more but I am quite lazy as far as my blog is concerned).
Anyway have a great weekend and I'll speak to you again soon.
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