June 11, 2010

Weekly Trading Update - 07-11 June 2010

This could potentially be my last trading update until September because for the next four or five weeks I shall be glued to the World Cup (with many matches starting as early as 12.30) and will probably concentrate on my stock trading rather than my forex trading. Then after that I will hopefully be going to Thailand for 6 weeks so I won't be trading forex then either. Anyway it's not definite yet. I suspect I will continue placing a few trades but we'll have to wait and see.

Anyway back to this week and it's been a reasonable enough week. My 4 hour trading system generated two profitable trades, even though the profits were relatively small, and my fibonacci trades, which I started trading last week, generated two winning trades out of three.

I banked 20 points going short on the USD/CAD pair earlier today at 1.0348 close to both the pivot point and the 161.8% fibonacci extension level and I also banked 20 points on the USD/JPY on Monday afternoon. Unfortunately I placed a silly trade on the EUR/GBP pair on Tuesday which cost me 20 points but I learn't my lesson not to place a trade based on fibonacci extensions alone. The other two trades were close to strong resistance lines but this one wasn't.

Regarding my main 4 hour trading system there were two trades in total. The first was on the USD/JPY pair late Monday night. The EMAs crossed downwards on the 4 hour chart and I went short at 91.70. Because I couldn't sit and watch it overnight I set my limit order at 40 points and went to bed. Thankfully I woke up the next morning to see this order had been filled, which is always a great feeling.

The second trade was on the EUR/GBP pair on Tuesday morning. The EMAs had tried and failed to cross upwards so I went short at 0.8270 after the price fell once more. I wasn't totally confident about this one, particularly after the price moved back upwards. At one point I was down 10 points so when the price fell back downwards and was 20 points in profit I decided to bank the profit while it was there. Of course the price did inevitably reach my initial 40 point target, but there was a lot of indecision before that and I doubt if I would have held on that long.

So it was a pretty good week overall as regards my forex trades. Elsewhere it's been another bumper week on the markets with Lloyds again producing the goods, but as this is a forex blog I won't bore you with the details.

I'm off now to enjoy the World Cup and cheer on England, who will of course be lifting the trophy on July 11th (you never know, miracles do happen!!). Have a great weekend.

(If you would like full details of my main 4 hour trading strategy, you can access it for free when you subscribe to my newsletter. Simply fill in the short form above).



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4 Comments on Weekly Trading Update - 07-11 June 2010 »

June 11, 2010

Trevor @ 5:25 pm:

Your comments on share trading are also most welcome here. I like Lloyds 4h with Dynamic Zone RSI (5,5); UK Mining shares also move nicely. With hundreds of shares to potentially follow, how do you choose? Do you spreadbet them via IG Index too?

Thailand has excellent Internet connections, even 3G wireless broadband which started this year. So no excuse not to follow the markets!


June 12, 2010

advancedforex @ 6:23 am:

"Thailand has excellent Internet connections, even 3G wireless broadband which started this year. So no excuse not to follow the markets!" - He is right you dont need to take a break from trading instead give only a few hours or minutes whenever possible. I am equally exited for the world cup but forex is god to me as well.

James Woolley @ 9:54 am:

Thanks for the comments guys. It's nice to know that there's at least 2 people reading my weekly updates. It sometimes feels like I'm talking to myself.

Yes Thailand has good internet connections but the hours aren't great. I like to trade mainly between 08.00 and 12.00 (which is 15.00-19.00 local time if I remember correctly) but I'm usually out doing stuff then. Plus you have to wait until 21.30 for the US market to open, by which time I'm ready to go out for a few drinks.

Last time I was there I only went online for about 30 minutes a day just to check my stocks and see if there were any bargains around, and this served me well because I remember making excellent profits from JKX Oil and Lloyds. So I will probably do the same again.

Trevor, my stock trading set-up is quite complicated. I have a screener set up on ProRealTime which alerts me to FTSE 350 stocks where the TRIX is below 0 and the stochastic (8,3,3) is below 20 (on the daily chart).

This tells me which stocks are starting to look oversold. I then use various other indicators as well to help find stocks from within this list that seem to have bottomed out.

I like stocks to remain on this screener for several days before going long or buying physical shares and I also go in heavier when the FTSE and Dow appear to be oversold.

That's why I piled into Lloyds at 51.2p earlier this week. The indicators weren't perfect in this instance but I was expecting a big bounce from the FTSE.

Lloyds is my favourite share because in the long term I think it's certain to rise to at least 90-100p, and in the short term I'm happy to keep loading up with shares every time it falls back to 50-51p (or lower) and making an easy 8-12% each time. I also like to buy Barclays every time it falls to 270-280p for similar reasons.

Although I use a screener to look for opportunities from within the top 350 companies, I mainly stick to a small number of companies that I know inside out. These include Lloyds, Barclays, Vodafone, Rio, BHP Billiton, Aviva, BP, JKX, Hochschild, Tesco, Sainsbury and many of the utilities companies.

Trevor @ 12:51 pm:

Actually 08.00 - 12.00 UK is 14.00 - 18.00 in Thailand April to October: ideal for avoiding the afernoon heat. Just do your shopping in the relative cool of the morning but bear in mind some department stores don't open until 10.00 local (to 21.00 or 21.30). A good country for late risers!

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