This week might seem like a week of missed opportunities, but really, it only seems that way because many of our entry and and exit points were cautious. Not a bad thing, but it means the temptation to kick yourself when every trade would have worked out. The key to be a successful trader though, is to go on what you know, and to recognize that you can't see into the future. You've got to assess the risk on every trade you make, and if you start letting previous trades get to you, that's when you make emotional mistakes that cost you money. Erring on caution is less likely to lose you money, but erring on emotion and non-calculated risks can wreak havoc on your bank account. You've got to bide your time, and then strike when the reward is in tune with the risk and your bank balance, and your appetite for risk. Trading is a game of patience, and we've been tested in that all week. All said and done, we're in the black, so while the missed opportunities can hurt a little, we can come away saying we've done alright this week.
USD/CAD (closed, profit)
There were signs that the USD was bottoming out and we timed our entry point to go long on the pair (Buy USD) on Monday May 24th. As the trade matured, a reassessment of a number of factors lead me to dump the pair for a small 15 pip profit. The news of the 101 billion dollars of government debt notes to be auctioned off this week certainly indicated that the USD bounce we were hoping to get in on was more likely a blip. It didn't help that the markets were pretty thin due to the holiday Monday in a number of countries. A thinner market makes for more unpredictable fluctuations.
EUR/USD (closed, profit)
The thin market also made me nervous about the EUR/USD short (sold EUR) initiated on the holiday Monday, and I decided to bail at the break even point. It turns out it was overly cautious, and the pair did eventually drop, but hind sight is always 20/20.
AUD/USD (never an active trade)
The entry point to get short on this pair (sell AUD) was just missed, but all systems pointed to go in terms of leaving the order open and sell the pair when the price came back up to our entry point. I got word that some of you got in, and others did not. I was one of the ones who missed the entry point and my order was not fulfilled. The price of the pair hit our entry point just barely and so briefly that not all orders were fulfilled before the price fell shy. Our take profit point of 74.75 was not reached, but I believe many of my followers got out at around 77.7 as it didn't look as though it was going to mature any further in our favour.
USD/CAD (open, in profit)
On May 27th I sold a unit at 1.1110 and this trade is still active, up about 200 pips. Our take profit level is at 1.087, but I may adjust that to somewhere in the 1.05 range, and adding another unit is not out of the question either. Keep posted on my trades as I make them by following me on twitter. The pair has been in decline because of the treasuries, but if stocks continue to be on the rise, that decline is set to continue. Some speculate that USD/CAD could trade at par by the end of the year, but we'll see what the markets have to say about that.
USD/CAD +15 pips
EUR/USD 0 pips
USD/CAD (still open, at approximately +200 pips)
Weekly Evaluation and Performance:
Weekly Gains: +15 pips, $15
Total Gains: -265 pips, down 53% of original investment
Sample Portfolio:
Initial Investment: $500
Weekly Pip Gain: +15
Weekly Monetary Gains: +$15
Current Balance: $265
Portfolio Activity and Performance:
Status - Pair - Action - Result
closed, USD/CAD, buy 1 unit, +15 pips or +$15
closed, EUR/USD, sell 1 unit, +0 pips
open, USD/CAD, sell 1 unit, (unrealized profit at 208 pips, or $190)
Weekly Trade Total: 2 completed trades this week
Weekly Report Card: 100% or 2/2 trades profitable, +15 pips
Trade Total: 6 completed trades
Trade Report Card: 50% or 3/6 trades profitable, -265 pips
Want to get up to the minute details on my trades? Join me on twitter and you can get my most recent orders and trades emailed to you or sent to your mobile phone. Go to www.twitter.com search for Aaron Reid or BDIForex
No comments:
Post a Comment