You may recall that last week my forex trading produced some excellent profits but my shares were relatively flat. Well this week it's been the other way round. My shares have performed excellently and I have banked some nice short term profits, plus I still have some open positions in Lloyds, Barclays, Tesco and Sainsbury that are all nicely in profit. However I only managed to break-even with my forex trading.

My 4 hour trading system (see right for more details) produced just the one trade. It was on the EUR/USD pair and it occurred on Tuesday afternoon. The trend was still very positive on the daily chart (indicated by a green Supertrend indicator) so I went long after the EMAs briefly fell and then crossed upwards on the 4 hour chart. After the crossover candle I waited for a slight pull-back and went long at 1.4215.

I held the position overnight, setting my target at an ambitious 75 points. However this wasn't hit and I ended up closing half the position for 50 points and moving my stop loss up to break-even, as I would normally.

I wasn't totally convinced there would be too much more upside and figured that 1.4300 may well act as a resistance level (which didn't actually turn out to be the case in this instance) so set my profit target at 1.4295 for a further 30 point profit. Luckily this target was hit, but I was surprised to see it continue going all the way up to 1.4400 and was a little bit annoyed with myself.

This frustration continued for the remainder of the week as the Forex Morning Trade system had a rare losing week and cancelled out pretty much all of the gains from the previous trade. It was a very strange week because every day this system got the direction right, but it kept falling just short of the 40 point profit target and going right the way back to break-even, as you can see below:

Monday: -40 points
Tuesday: 0 (break-even)
Wednesday: 0 (break-even)
Thursday: 0 (break-even)
Friday: 0 (break-even)

So what could have been another excellent week actually ended up being a losing week. I'm not too upset about the system in general because I just think it was really unlucky this week, but it is always frustrating when you lose money, even if it is just 40 points.

Overall though it was a reasonable enough week. My share trading profits have ensured that I have made some gains this week, and I think this just goes to prove my point that I made in my last blog post (which has sparked a little bit of a debate) that you shouldn't always rely on forex trading profits as your only source of income.