September 23, 2011

Weekly Trading Update - 19-23 September 2011

Well I hope you're 'enjoying' the market turbulence right now. My long term share portfolio isn't, but with regards to forex trading it's been one of my most profitable weeks ever. Apart from one losing trade, every trade was a winner.

So let's start with my 4 hour system first of all. After a quiet couple of weeks it sprung back to life this week giving decent signals on the GBP/USD and EUR/USD pairs and the FTSE 100.

The losing trade was on the EUR/USD pair. After a period of consolidation, there was a nice downward EMA crossover on the 4 hour chart on Wednesday morning. However after entering a short position at 1.3674 later in the afternoon, the price moved upwards and I was eventually forced to take a 40 point loss. What's particularly annoying is that after this brief upwards spurt, it continued to move downwards, as originally expected.

Not to worry though because the other trades went to plan. The GBP/USD also crossed downwards on Wednesday morning / afternoon. I missed out on an entry point initially because there was no real pull-back, however later in the day when the price rose (along with the EUR/USD pair), I managed to get in close to where I wanted to at 1.5670.

The price then fell sharply for the rest of the day and I managed to close half the position for 50 points, and the other half at 1.5550 for 120 points.

The best trade of the lot was the FTSE trade. This was a complete no-brainer. The price had risen to the 5300-5400 level, and it was only a matter of time before we were hit with some more bad news and the index would be dragged lower all over again.

This is exactly what happened on Wednesday of course, and I entered a short position at 5296 after a downward EMA crossover on the 4 hour chart. I really wanted to hold on to this one but I still closed half for 96 points once it hit 5200 because it was getting late and I needed to let it run overnight.

So I set my exit price for the second half of the position at 5100 and this was taken out with ease yesterday morning for 196 points profit (an average of 146 points for the overall position).

(There was also a downward crossover on Monday as well which would have been quite profitable. However for some reason I wasn't really paying attention, and by the time I had spotted it, it was too late).

I also had some great success trading my early morning breakout system as well. There were no trades yesterday or today because the overnight range was too big, but on the first three days I banked profits of 20, 26 and 20 points respectively taking positions either just after or just before the London and European markets opened for business. 

So as I say, it was a hugely profitable week overall. Of course it's tainted by seeing some of my share holdings fall in value but I'm keeping the likes of BP, Tesco, Barclays and Vedanta for the long term anyway, and I am happy to collect the dividends in the meantime. Plus it does mean that I can pick up some real bargains, which I am planning to do soon when some more money comes through.

Anyway have a great weekend and I will speak to you again soon.



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