May 27, 2011

Weekly Trading Update - 23-27 May 2011

It's been quite a profitable week this week on all fronts. My share trades did well, the Forex Morning Trade system generated a profit of 92 points, and my main 4 hour forex system (see right for more details) generated a decent return as well. (I also traded a few breakouts on Wednesday which produced a small profit as well, which you can read about in my previous blog post).

I should mention that despite the fact that the Forex Morning Trade system produced a nice profit this week, I have decided to stop trading this system for now. It has had a few more losing weeks in recent times, and to be honest I am getting fed up of getting up so early every day. So this will be the last time that I report the results from trading this particular system:

Monday: +40 points
Tuesday: no trade
Wednesday: 0 (break-even)
Thursday: +40 points
Friday: +12 points (closed manually because didn't want to take a loss)

I may return to this system at a later date and will still keep on eye on the results, but I am putting it to one side for now.

On to my 4 hour system now, and it found some decent trading opportunities this week. There were two trades in total - one on the GBP/USD and one on the USD/JPY pair.

The first was on the GBP/USD pair on Monday morning. The EMAs crossed nicely downwards on the 4 hour chart and I went short at 1.6178 after a slight pull-back. I then closed half the position for 50 points and moved my stop loss down to break-even. I then closed the second half of the position at 1.6100 in the end, which was extremely cautious but I didn't think it was going to fall much further at the time.

There was actually another downward EMA crossover on Wednesday morning, but to be honest I was so busy trading the breakouts that I mentioned in my last blog post that I didn't even notice. Not to worry though because it would have been a losing trade anyway and the breakout trades generated a total profit of 23 points if I remember correctly.

The other trade (on the USD/JPY pair) occurred on Thursday afternoon. I was reluctant to enter a short position after the EMAs crossed decisively downwards on the 4 hour chart, simply because the candle was so long. However I did eventually decide to open a position and went short at 81.40.

I managed to close half the position at 81.00, and having moved my stop loss to break-even, I am still waiting for my second price target of 80.60 to get taken out. I'm just going to sit and wait to see what happens for the rest of the day. It's essentially a free trade anyway, which is the major benefit of moving the stop loss to break-even after you close the first half of the position.

Finally it's been a great week on the shares front. My spread betting account is in a very healthy state after banking profits in Barclays, Lloyds and BP and my main investment portfolios are not doing too badly either with Lloyds the only share currently in the red. However I'm planning to hold on to those for about 5-10 years anyway.

I bought some shares in Vedanta this week at 2080p, but other than that I'm still most interested in accumulating shares in Barclays, Lloyds, BP and Tesco for the medium-long term.

Anyway that's enough for this week. I've waffled on far too much already. Have a great bank holiday weekend.



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