Weekly Trading Update - 01-05 November 2010

It hasn't been the greatest of weeks this week. I've come away with a small profit, but nothing to get excited about. My 4 hour trading system (see right for more details) generated two possible set-ups (on the EUR/USD and USD/JPY pairs) but I couldn't get a good entry point on the EUR/USD crossover because there was no pull-back, and I'm reluctant to go short on the USD/JPY pair because I think it's due to bounce back shortly. So there were no trades there.

The Forex Morning Trade system also had a rare off week as well. After two losing trades on Monday and Tuesday, it did however manage to finish the week at break-even after two winning trades today and yesterday, as you can see below. I can't really complain though. It still hasn't had a losing week since I first started trading it on 13 September.

Monday: -40 points
Tuesday: -40 points
Wednesday: no trade
Thursday: +40 points
Friday: +40 points

So in the end the only trade that pushed me into profitability was the breakout trade that I brought to your attention in my last blog post.

On Wednesday the USD/JPY pair had traded in a trading range of just 7.8 points in the previous 9 hours up until 9.00 (UK time), which was incredibly small considering the average daily range is usually around 62 points. So I waited for the price to move outside of this range and jumped on board, entering a long position at 80.70.

I then closed half the position for 10 points and moved my stop loss to break-even. My next target was R1 (80.93) and thankfully this target was hit fairly easily. In fact the price went on to hit R3, moving up another 65 points, giving a trading range of 98 points for that particular day, but there was no way of knowing that was going to happen at the time.

Elsewhere I've made some decent profits on Barclays in the last few weeks, which is easily my favourite share at the moment, both for trading and investing. In fact I have probably made nearly as much trading Lloyds and Barclays this year as I have trading forex because I go in so much heavier.

I'm currently watching Morrison and Tesco very closely because if they could just drop a little further they could become excellent trading shares as well, particularly as supermarket shares nearly always rally strongly in the run up to Christmas.

Anyway that's enough of my waffling. I'll speak to you again next week.