August 12, 2011
Weekly Trading Update - 08-12 August 2011
It's been a losing week this week unfortunately and it's fair to say that the markets are quite hard to trade right now. In the last few weeks, and indeed months, I have made some modest profits, but the really big profits are just not there at the moment.
This week I traded just twice, and they were both losing trades. Using my main 4 hour trading system (see right for more details) I went long on the EUR/USD (because the Supertrend indicator was still green on the daily chart) when the EMAs crossed upwards on the 4 hour chart on Tuesday. However after entering at 1.4255 the price then fell back and I ended up taking a loss of 40 points.
The other trade was an early morning breakout trade on the GBP/USD pair earlier today. On every other day the GBP/USD had moved too much in the overnight trading session, so there were no trading opportunities, but today the range was relatively small. So I entered a short position at 1.6175 when the price broke out of the overnight trading range. However the breakout turned out to be a false one and I had no option but to take a 20 point loss.
So overall I have made a loss from my forex trading this week, which luckily doesn't happen that often, but it's never a nice feeling. The only positive news is that I managed to bank quite a bit of profit trading some beaten up stocks that had fallen far too low such as BP, Tesco, Barclays and Vedanta. I've also picked up some more shares in BP and Vedanta for my long term share portfolio which will hopefully do very well in the next few years.
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