June 17, 2011
Weekly Trading Update - 13-17 June 2011
It's been an eventful week on the markets this week. Overall I didn't do too badly, although my forex profits were somewhat cancelled out by some of my shares taking a slight hit.
The stock market fall wasn't too disastrous because I managed to buy some more shares in BP, as well as Man Group, who are set to pay a nice dividend in a few weeks time and look good value in my opinion. I also managed to open a profitable short position on the FTSE 100 using my main 4 hour trading system (see right for more details).
This index was still in a downward trend according to the Supertrend indicator on the daily chart, so when the EMAs briefly crossed upwards before crossing downwards straight away again on the 4 hour chart, I decided to open a short position at 5793 on Wednesday. I wasn't looking for a massive move because 5740 looked like a decent support level at the time, so I closed the entire position as soon as it was 40 points in profit.
Other than that, there were two trades on the major forex pairs - one on the GBP/USD and one on the EUR/USD. The trend was still upwards on the daily chart so I went long on both of them after an upward EMA crossover on the 4 hour chart.
The first, ie the GBP/USD trade on Monday, worked out well because I managed to bank 50 points profit after letting it run overnight, but the EUR/USD trade on Tuesday never looked like coming good and was automatically closed in the overnight session for a 40 point loss.
Elsewhere there was just one other trade and that was an early morning breakout trade on the GBP/USD pair on Monday morning. I was late getting up that day so I was delighted to find that the overnight trading range was still a miniscule 26 points or so when I switched my computer on at 8.15.
I waited for the price to break out of this range and when it did I went long at 1.6256 just after 8.30. The central pivot point was around 20 points higher so this seemed like a natural exit point, and thankfully the price did go on to hit this target. I should maybe have closed half the position and let the other half run, but I was happy to start the week off with a safe 20 point profit.
So as I say it was a decent enough week. Let's hope it continues.
(If you would like to find out more about my 4 hour trading strategy, simply fill in the form above).