May 13, 2011
Weekly Trading Update - 09-13 May 2011
With regards to my forex trading, it's been a rather lacklustre week this week. My main 4 hour trading system (see right for more details) did manage to squeeze out a decent profit thanks to one good trade on the GBP/USD pair, but this was negated somewhat by the Forex Morning Trade system, which had a rare losing week and ended up losing 40 points in total. The full results of this early morning trading system for this week are as follows:
Monday: no trade
Tuesday: no trade
Wednesday: -40 points
Thursday: +40 points
Friday: -40 points
Going back to my 4 hour system and as I say, there was just the one trade on the GBP/USD pair. This pair is now in a downward trend (according to the Supertrend indicator on the daily chart), so I was looking to go short on a downward EMA crossover on the 4 hour chart.
This occurred on Wednesday afternoon and I was initially cautious about opening a short position because the crossover candle was pretty long, but I did eventually decide to take a position. I waited for a pull-back and went short at 1.6360.
I had to leave it running overnight so I set my target price at 1.6300, but thankfully this wasn't triggered and I could revert to my usual strategy the next morning. So I ended up closing half the position for 50 points and letting the other half run, moving my stop loss to break-even. The price then dropped sharply and I decided to close the position once it was 100 points in profit.
There have also been a few downward EMA crossovers on the USD/JPY pair but I really think we are close to the bottom for this pair, so I decided not to take any positions.
As regards my share trading, I have started building positions in BP and dabbled with a few spread positions in Tesco, but there's not much else to report. It's frustrating seeing the FTSE meander between 5800 and 6100. I wish we would see a big breakout one way or the other so I could either bank some big profits or pick up some juicy bargains.
Anyway that's just about it for another week. Have a great weekend.