August 26, 2011
Weekly Trading Update - 22-26 August 2011
I decided not to place any forex trades this week because we are at the height of the holiday season and the markets are just too difficult to trade with such low volume and low volatility. I have still managed to place one trade using my main 4 hour trading system (see right for more details), but that was on the FTSE 100.
I was still looking to go short because the Supertrend indicator was still clearly red on the daily chart (and there is still a lot of negative economic news around at the moment), and I did so when the EMAs crossed downwards on the 4 hour chart yesterday evening.
I opened a position at 5128 last night and let it run overnight, with a target price of 50 points and a stop loss of 40 points. Neither of these were hit overnight, so when the price fell this morning I closed half the position for 40 points and let the other half run, moving my stop loss down to break-even, ie my original entry point.
I am looking to exit the second half of the position for 80 points profit at 5050, and hopefully this price will be taken out later today. (UPDATE: It did get taken out this afternoon, so a pretty decent profit for the week).
Despite running a short position on the FTSE, I decided to go long on BP this morning at 379p. I already have loads of BP shares in my long term share portfolio, but on a technical basis it is well oversold right now and should go back up to 400p in the near future, which is where I hope to exit this spread betting position.
Other than that, there is very little to report. I will probably have a break from forex trading next week as well because the UK bank holiday means it is only a four day week anyway. So I might as well wait until September when the currency markets should start to pick up again.