Trading Round-up Week 35

These are my closed trades for week 35 – W/E 28/08/15

Closed Trades:

24/08/15 – AUD/USD Sell Limit Order from 0.7380 – Profit order hit @ 0.7260 for a profit of + 120

24/08/15 – EUR/USD Sell Limit Order from 1.1380 – Stop Loss hit @ 1.1520 at a loss of – 141

28/08/15 – USD/JPY Sell Limit Order from 120.40 – Stop Loss hit @ 121.66 at a loss of – 126

Total Pips Lost – 267

Total Pips Won + 141

Net Pips – 126

 

Trading Round-up:

What a week ! In the face of almost unprecedented market volatility, due in part to the PBOC and the low liquidity conditions I spoke of last week, I have this week returned a trading loss of – 126 pips for the first time in ages, reducing my August tall to + 1475 pips profit.

Last Friday’s risk-off sentiment was carried through to Monday’s European session and accelerated on the US opening causing USD/JPY to plummet some 580 pips to the downside taking out support at its 200 DMA on the way. This is an extreme move when you consider that this pair has an average daily range of between 60 to 70 pips. EUR/USD reacted in kind with a daily move of over 340 pips against an average of only 110 to 120 pips.

Blow by Blow:

Those who follow my results blog will note that my EUR/USD short entry was in line with previous highs at the top of an established 7 month trading range that I have previously traded profitably, marking it as a high probability trade; my S/L order was triggered at a breach of 15 month falling resistance. Despite this being in keeping with my trading plan it still irks me to then watch price retrace back to the downside, past my stop order, past my entry point, and close the week heading toward my profit target. It happens…

My USD/JPY trade fared no better. For some now inexplicable reason I decided to trade the risk off sentiment in the market and short this pair on a retracement back to the 200 DMA, which it promptly breached. To add to my disbelief my stop order was triggered in the final minute of Friday’s trading (yes I was still at my desk at 10pm on a Friday night) costing me 126 pips in the doing so ! If it’s of any consolation I did check to see what the larger institutions were doing re this pair (this relates to an institutional resource which I show you in module 6 of the courses I offer) and discovered that my trade plan was in agreement with a position entered by Morgan Stanley, who’s stop loss was also triggered 12 minutes before mine, showing that even the big-boys get it wrong sometimes.

Why am I telling you all this ? Because trading is a human endeavour, we are all fallible, all of us, no matter how long we have been in the market, so losses here and there are just a part of the process of trading for a living and should in no way dampen your appetite or dent your confidence – and knowing that Morgan Stanley took a loss in line with mine kind of made me feel okay about it.

My remaining closed trade of the week (AUD/USD short) went to its profit target at a 6 year low. Examining the chart now makes me wish I’d stayed in the trade to extract more profit from Mondays 280 pip move, but given that my T/P order was hit at 2.04am there was little I could do about it as not even I trade right through the night !

Looking Ahead:

Next week is packed seeing the Aussie cash rate decision and Chinese and UK PMI’s, Canadian GDP and Kiwi GDT auction figures released on Tuesday. Wednesday brings Aussie GDP and US ADP figures. Thursday brings more UK PMI figures and the European ECB rate decision along with the US jobs print. Friday is the main event featuring the US NFP release preceded by the Canadian unemployment rate figures.

Again trading volumes will remain light until Tuesday 8th September following the US bank holiday when trading floors return to full strength, as such be mindful of the fact that reduced volumes can give rise to reduced liquidity which in turn gives rise to increased volatility. I know that I for one will be treading very cautiously in the meantime.

Free Trade Calls:

I will post free trade calls here as and when I see high probability opportunities, however I am in the process of moving to a new site on a new server – of which full details will be published in due course – so these calls may be somewhat sporadic over the coming 3 to 4 weeks.

 

If you would like more information regarding these trades or the Forex Trader Training courses I offer then please feel free to contact me via my website at www.1on1fx.co.uk

Best regards

Charles Clifton

Forex Trader // Trading Coach // Signal Service

2017-11-16T14:46:53+00:00 Categories: Articles|Comments Off on Trading Round-up Week 35