Well it's been an incredible week. The markets have capitulated with a raft of bad news that just seems to go on and on at the moment, and it's not over yet because we have the non-farm payrolls later today which could also disappoint. On the forex front, it's been comparatively quite quiet.
I traded just once using my main 4 hour trading system. This was on the GBP/USD pair. The Supertrend was still green on the daily chart, and combined with the weakness of the US economy I was looking to go long on any upward EMA crossovers on the 4 hour chart.
I did so on Wednesday afternoon at 1.6370 after a nice pull-back. I then closed half the position for 50 points, moved my stop loss up to break-even, and hoped it would hit 1.6500. However it quickly ran out of steam and the second half of the position was automatically closed out at break-even.
There was also an upward EMA crossover on the EUR/USD pair but it wasn't a very good set-up so I left it alone.
Other than that I placed just the one breakout trade this week because on every other day the overnight trading range was too big on the GBP/USD pair. I placed this trade on Wednesday when the overnight range was just 40 points.
There was a lot of activity after 8.00 and after some volatility the price did manage to close above this range on the 5 hour chart and I went long at 1.6293. I then closed the whole position for 20 points because I didn't want to be still in this trade at 9.30 because of the UK economic data announcement (which I was expecting to be bad). As it turned out the data was better than expected and the price subsequently rose, but it was still a decent profit.
So overall I have made a very modest profit this week, but sadly my long term stock portfolio has taken a bit of a beating. I've cut a few losses in my spread betting account, but haven't sold anything else because they are all good value and should do okay in the long term.
(If you would like to check out my 4 hour trading system for yourself, you can access it for free when you subscribe to my newsletter. Simply fill in the short form above).
Filed under Blog by JamesW
del.icio.us Digg Furl Reddit Ask blogmarks Google Netscape Socializer StumbleUpon Technorati Windows Live Yahoo! Help
Permalink• Print• Email• CommentRelated EntriesIs It Wise To Trade The Economic Data Releases?Forex News TradingWeekly Trading Update - 22-26 August 2011Weekly Trading Update - September 29 - October 3Trading Without A Stop Loss Is The Quick Way To The Poorhouse2 Comments on »August 9, 2011Trevor