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Tag Archives: short

Trading Update.

Hi guys the Forex markets have been a bit subdued the last couple of days. The Dollar has recovered a little bit from last week, seeing AUD and Euro weaken. Cable has been trading sideways for 2 days so no trades on that one for us. EJ has come off a bit, but its just been announced that the Bank Of Japan are considering additional easing of their currency so that should see a pop in Yen pairs. I did say this was a strong possibility a couple of weeks ago and warned against taking short positions on EJ.

Not much happening trades wise yesterday. We did take a small short on AUD for 12 pips profit but that was it for yesterday.

Today we took AUD long at 10415 and closed at 10450 for 35 pips, and that was about it. Markets are very hard work at the moment so I hope things change soon. We are still making good pips on a weekly basis, so i hope tomorrow brings us a good trading day.

If you are in the markets tomorrow, have a great day. 🙂

3 Trades Today 124 Pips Profit.

Pretty crazy day today. The Euro news sent the price down and then up. I was very fortunate to be holding short trades at the time of the news, and 2 of my shorts hit target on the spike down. My short on Euro that i put on last night at 12866 hit my target of 12824 for 42 pips. I also entered Euro short again this morning before the news at 12879 which also hit 12824 for 55 pips. On the spike back up i entered Euro again at 12907, this trade went against me initially but came back and hit my target of 12880 netting me 27 pips.

The short trades on Cable and AUD that i put on yesterday were stopped out for 30 pips and 15 pips.

Total profit for the day was 79 pips. 🙂

More market moving news out tomorrow, when Ben Bernanke decides if the US is going to do QE. I think QE is already in the price so if he does not decide on QE watch out for the fireworks.

Dollar Weakness Sparks Rally In Euro Cable And AUD

With the weak numbers out of the US yesterday QE is looking very likely. The FOMC meeting this week should confirm that QE will happen. This news along with talk of a possible downgrade by Moody’s in 2013 has weakened the dollar significantly today, and we have seen a big rally in Euro Cable and AUD.

We have not taken any trades today as we have not had any set ups. Its a shame we did not go short US dollar as we would have had a good day, but if the set ups are not there we don’t trade. I have put a short on Euro at 12866 with a target of 12824. I also have a short on Cable at 16070 with a target of 16040. I also have a short on AUD at 10425 with a target of 10404. With a bit of luck these targets should be hit in the Asian session, or early UK session. I don’t normally rollover trades, but i think we have seen the top of this move up for now, and it would be nice to get some pips in the bank this week.

I will be looking for short trades tomorrow as i think we are due a dollar correction. Even with QE i think the dollar has been sold down too far, and will get stronger as the week unfolds.

6 Trades Today 109 Pips Total.

First trade of the day was an EJ long at 98.03 closed at 98.39 for 36 pips profit.

The next trade was on Euro Dollar. We had 2 potential entries short so we split the position between the 2 entries. The first entry was at 12536, this trade went into a little profit before some news came out that sent the Euro up and hit our other short entry at 12540. Both trades went into negative pips by around 16 and 12 pips respectively. We don’t trade news but we are aware of it, and how it can affect the price.

I decided that based on the news release the 2 trades that i took were going to fail, so i looked at getting out of these 2 shorts as quickly as possible, and with as little pain as possible, as i thought the price would go higher, and in fact it did.

When a trade or trades fail, the first thing you should do is not panic. When you panic you make bad trading decisions. I quickly assessed the situation and looked for a possible exit from the 2 short trades. Now the price rarely moves too far in one direction without some form of retrace, so i set my exits based on a retrace of the move higher, at the logical entry point of a new long trade. The logical long entry was around 6 pips below my first short entry at 12536, (12530) so i set a limit order to close both trades at 12533 to be on the safe side. The price came back and hit 12531 so i just managed to get out of my 2 trades for 10 pips combined. The price then proceeded to move higher.

The 4th trade of the day was a short trade on Cable. We entered at 15898, and closed at 15887 for 11 pips profit. My initial target for entry was 15901, but i had to allow for the spread so i went in at 98. The price actually went as high as 04 before it started to come back down, so i could have set my initial target and still got filled, but id rather get in a few pips early than miss the trade.

My 5th and 6th trades were Euro short at 12610 and closed at 12590 for 20 pips, and entry short again at 12620 and closed at 12588 for 32 pips profit.

There was a lot of news out today that affected the markets. I was initially expecting a move down today, but the positive news drove prices higher. There is an ECB meeting tomorrow so i am expecting some volatility. I am sure we can get some good trades again. 🙂