The Euro and Swissie repeated the movements of Monday, losing ground to the US dollar. The pound also repeated gaining a little ground on the dollar. It is fairly unusual for the European currencies to be going in opposite directions, but it does happen. I don't recall two days in a row though.
I did not trade again today. With my busy schedule tomorrow and the trip to Boston on Thursday and Friday, it does not look like I will trade at all this week. I will update you what happens in Boston when I return.
Here are the daily stats for Tuesday, October 27, 2009.
On Friday, the pound moved in a big way losing ground to the US dollar. Today, the Euro and Swiss Franc followed suit losing big amounts to the US dollar, about twice the normal pip interval. This all occurred during the New York session despite not having any economic announcements. Very interesting. To me this signifies that the dollar's losing trend is, for the moment at least, over.
It's too bad I did not get this retracement when I expected it on Wednesday. Well, that was last week. As I said on Friday, I need to take a few days off to clear my head. So, I did not trade at all today.
Also, SummerstreetFX wants me to fly to Boston to meet with them on Thursday. I have a networking lunch on Wednesday, so I do not know how much I will trade this week. Probably not much. I'm very curious about my meeting in Boston.
Nonetheless, here are the daily stats for Monday, October 26, 2009.
Just like in life, with trading timing is everything. The drop on the pound that I was expecting finally happened, just two days late. As I said on Wednesday, expectations that don't happen can cause a problem.
Through the Asian session, the pound went up in value, gaining on the dollar. Not until midway through the European session, did it finally drop. An negative announcement on the quarterly British gross domestic caused the currency to drop over 100 pips in seconds, and it continued from there. For the day, the pound's interval was almost 400 pips, one of the largest moves of the year.
The problem this caused is that I was prepared for the pound continually gaining ground. This resulted in more losses and a overall negative return for the day and the week. This is only the third negative week in 3 months.
I did 41 new trades today, closing 31 winners including 8 older trades, 8 losses, and 19 trades remain open. The net pips for today is -693 pips, or -8.19% loss.
The net pips for the week is -1157.9 pips, or -15.27% loss.
Here are the daily stats for Friday, October 23, 2009.
Open
High
Low
Close
Pip Interval
GBP/USD
1.6624
1.6690
1.6296
1.6306
394
EUR/USD
1.5033
1.5059
1.4985
1.5001
74
USD/CHF
1.0043
1.0100
1.0031
1.0090
69
USD/JPY
91.28
92.11
91.27
92.08
84
GBP/JPY
151.74
153.19
149.94
150.15
325
This week has been very challenging for me to say the least. The continual round the clock vigil is wearing anyway, but the losses from this week have been very trying. This week has been a roller coaster, especially after the remarkable results on Monday and Tuesday, then the losses on Wednesday and Friday. I think I will take a couple days off from trading to clear my head before rebuilding the account. A clear head is essential for trading.
The currencies were in sync today, except for the yen. The currencies perform nearly a perfect V during the European session and New York session. By the end of the day, all of the currencies gained just a little ground on the dollar. However, the yen lost a little ground on the dollar.
I took full advantage of the movement today and started recouping losses from yesterday. I did 30 new trades today, closing 26 winners including 6 older trades, 0 losses, and 16 trades remain open. The net pips for today is +561.6 pips, or 8.99% gain.
Here are the daily stats for Thursday, October 22, 2009.
Expectations can be very dangerous in certain lines of work. Trading is certainly one of them. You can not expect the market to behave the way you want it to. It is advisable to plan your trading day; but if it goes against that plan, you have to react accordingly. If you don't, you will get hurt.
Such was the case today. With the dollar rebounding during the previous day, I was expecting the dollar to continue to rebound and begin a reversal. There were many reasons for me to expect this including Elliott Wave theory. However, like many theories, interpretation is subjective to some extent.
Well, the dollar did not continue to rebound. Instead, the exact opposite happened and in a big way. The dollar lost almost 300 pips and the pound/yen pair followed suit. This was disastrous for me and I did not react quickly enough. Instead of taking care of some short sells when the dollar rebounded at a less painful place, I was forced to take them in the middle of the European session at a more painful place when it was clear that the dollar was going to take a beating.
This meant liquidating 10 older positions at a larger loss than I wanted to take. If anyone ever tells you that forex trading is easy, run the other direction!
Today I made 56 new trades, closing 53 winners including 8 older trades, 16 losses including the 10 older ones I mentioned, and 12 trades remain open. The net pips today is -2512.2 pips, or -40.75% loss. This wiped out the extraordinary gains of the past two days.
Keep this in mind, it wiped out gains from just two days of trading.
Here are the daily stats from Wednesday, October 21, 2009.
What a fantastic day!!! Not only did I set new records across the board for the account, but the dollar lost quite a bit a ground later during the day easing the stress of some short positions that remain. Within the next day or so, I should be able to liquidate these losing positions at a less painful place. These are remnants from last week's big moves against the dollar and from the internet outage I experienced on Thursday.
In the meantime, the trading over the last couple days has gone very well. All of the currencies continued to make some larger moves up and down forming V's and upside down V's. It becomes a little easier when you expect them and when the connections are up allowing trading to be done.
During the Asian session, the currencies were a little more subdued, but made their V patterns on a smaller scale. Then, the currencies made a larger move against the dollar during the European session setting new monthly highs, but retreated significantly during the New York session. Each lost ground to the dollar at the end of the day or finished with a doji, ending about where it began.
I made 46 new trades today, closing 48 winners including 10 older trades, 0 losses, and 25 trades remain open. The net pips for today is +849.5 pips, or 20.82% gain. The total pips, percentage gained, and dollar increase are all account records.
Here are the daily stats for Tuesday, October 20, 2009.
Open
High
Low
Close
Pip Interval
GBP/USD
1.6420
1.6486
1.6326
1.6381
160
EUR/USD
1.4962
1.4993
1.4881
1.4943
112
USD/CHF
1.0113
1.0167
1.0082
1.0115
85
USD/JPY
90.53
91.05
90.06
90.76
99
GBP/JPY
148.66
149.35
147.47
148.68
188
The dollar should gain some more ground over the next day or so. I will then be able to unload some of the short positions that I got caught in last week at a much lower loss. After that, the dollar should lose ground again. This is classic Elliott Wave movement for a trending market.
This was quite a start to the week. The currencies were really moving, but couldn't really decide which way to go. They went up and down with no real patterns forming. This left me with a number of trades open that I did not expect to have. The market would zig when I thought it would zag. I will see if I get can a number of these closed tomorrow.
The real key is that the day ended with the dollar losing ground again across the board to continue the trend. The question is if the trend is losing momentum and ready for a reversal?
I did 41 new trades today, closing 34 winners including 9 older trades, 0 losses, and 28 trades remain open. The net pips for today is +635.9 pips, or 18.31% gain.
Here are the daily stats for Monday, October 19, 2009.
