March 18, 2011
Weekly Trading Update - 14-18 March 2011
It's been another highly dramatic week on the markets, but it's been pretty good overall. My main 4 hour trading system (see right for more details) generated one good trading opportunity and the Forex Morning Trade system, after having a very rare losing week last week, bounced back to form with a total profit of 68 points, as you can see below:
Monday: -40 points
Tuesday: +40 points
Wednesday: no trade
Thursday: +40 points
Friday: +28 points
This system was 40 points ahead going into today's session, but after the price fell just short of the 40 point target earlier this morning and then started falling, I decided to take profits of around 28 points and call it a week. After all it would have been very disappointing to see if fall back to break-even (which is exactly what happened) and not bank any profits at all.
My 4 hour trading system produced a few possible set-ups on both the GBP/USD and EUR/USD pairs, but none of them were ideal set-ups because either the breakout candle was too long, or there was no pull-back for me to get a good entry point. The only one that I did trade was the upwards EMA crossover on the GBP/USD pair yesterday morning.
This one had a big crossover candle as well, but it did at least pull back nicely to allow me to enter a long position at 1.6116. Plus it happened in the morning (UK time) which is always a great time of the day to trade this particular system.
In the end I was still in this position at the end of the day because my initial price target of 50 points had not yet been reached. So I set my stop loss at -40 points and my exit point at +50 points and left it to run overnight. Thankfully this target was subsequently hit and I banked a nice profit of 50 points.
There was one other trade to tell you about and that was a breakout trade on Wednesday morning, again on the GBP/USD pair. After a very small overnight trading range, I went long at 1.6097 once the price broke above this range (and above the pivot point) on the 5 minute chart. I closed half the position for 20 points and was looking for a big move up towards R1. However this failed to materialise and I was stopped out at break-even.
Overall, though, it's been a very good week on the whole. It would have been even better if my stock portfolio hadn't taken a slight hit, but I did at least manage to buy some more shares in Lloyds and Tesco for my long term share portfolio, which do look very undervalued right now. I have also started scaling into Barclays as well. I bought some shares a few minutes ago at just above 280p and I will continue buying more in the unlikely event that they fall as low as 270p or 260p.
Anyway I will speak to you again next week. Have a great weekend.