September 24, 2010
Weekly Trading Update - 20-24 September 2010
It's been quite a mixed trading week for me this week. My 4 hour trading system (see right for details) generated two winning trades out of two, but the day trading system that I've recently started trading live only managed to break-even with two 40 point winners, two 40 point losers, and one day where no trading signal occurred.
On a personal note, I actually finished the week 40 points down trading this system because of a stupid mistake on my part. As I mentioned in yesterday's blog post, I looked at the 5 minute chart instead of the 15 minute chart and missed out on what would have been a 40 point winning trade.
However the fact that the Forex Morning Trade system finished the week at break-even is another positive in my opinion because the GBP/USD has been very tough to trade this week on an intraday basis. Taking a long-term view, my view hasn't changed. I still think this is a great system.
Anyway back to my 4 hour trading system and as I've already mentioned, I've had two winning trades this week. The first of these was on the GBP/USD pair in the early hours of Tuesday morning. The Supertrend indicator was still red on the daily chart so I was looking to go short as soon as the EMAs crossed downwards on the 4 hour chart.
They did so a few hours before but I was waiting for a slight pullback to get a good entry point, and managed to do so at 1.5566. I then went to bed, set my stop loss 40 points away and my target price at 50 points. Neither price was hit overnight and I subsequently closed half the position for 50 points the following morning and let the other half run, moving my stop loss to break-even. I was really expecting a decent fall in the price but unfortunately it never happened and I was stopped out at break-even with the second half of my position.
The second trade occurred later on that day and it was the USD/JPY pair this time. The Supertrend indicator was actually green on this pair, so I should really have been looking to go long, but I just felt that after last week's spike upwards on the Yen news, the price was drifting sideways and rapidly running out of momentum. So I decided to go short when the EMAs crossed downwards on the 4 hour chart and entered a position at 85.40.
Thankfully the price continued falling and I managed to close half the position for 40 points before taking another 40 points after the price hit 84.60. I closed a little early in hindsight but I was happy enough with the overall profit.
So all in all it was a profitable enough week, although I'm still kicking myself for losing 40 points on the day trading system when I should have broken even, like everyone else who used the system.
Anyway if you would like to find out more about this new day trading system, you can do so by clicking here and reading my full Forex Morning Trade review. You can also learn all about my 4 hour trading system when you subscribe to my newsletter. Simply fill in the short form above.