Saturday 25 May, 2013
This week has been a so-so week. Not too bad, but not as good as I hoped and what it could have been. Starting this week I’ve made a conscious decision to do some work other than trading to help me reduce impulsive over-trading caused by too much screen-time. It has helped me avoid impulsive trading to some extent, but a new problem has been created: I miss some signals, and miss the focus that resulted from a 100% dedication to trading. I lost about 5% due to simple mistakes like getting the wrong time for data events, or being away from the computer and being unable to monitor trades. On the plus side, it helps me to follow my system rules more closely, which I’ve done except for staying out of the markets during volatile data events. I’m happy to see that my system produces good results even in such choppy markets. I will work through these issues over the next few weeks and hopefully arrive at a good balance.
Results for this week: up +16.4% for the week with a profit of $2,770, bringing the account up to $19,698 which is +20.6% for the month-to-date.
Next week will start relatively quiet, with Monday being a holiday in the US. It builds up with CPI and employment data from Germany, climaxing with the US GDP data later in the week. The markets will be positioning for the ECB meeting in early June. The yen pairs have had an interesting week and next week could also see some fireworks, especially with Mr. Kuroda scheduled to speak mid-week. Most pairs are at interesting levels, close to major support/resistance so it could be choppy but with a possibility of a break-out.
EURUSD is close to completing a large potential H&S top on the daily/weekly chart. The market is watching it closely. Such a situation with the market watching these levels closely, is ripe for a fake-out. We should be very watchful and nimble.
The AUDUSD has been a great trade for many over the past 2 weeks, but not for me. If you recall, I wrote a post about 6-8 weeks ago, basically giving up on the AUDUSD in frustration due to the tight ranges. So I was not prepared for the break when it happened, and I didn’t enter the trade later as I didn’t want to chase the market. Missed a big opportunity! Never mind, I am still reasonably positive just trading the Euro and the Yen.
Attached is the latest, updated trades worksheet.