Tuesday 16/03/10 3 x Trades for +45

Last week was a successful week for me financially in the markets and so after a long weekend away in Edinburgh watching the rugby I was ready to ease myself back into the markets this morning.

Yesterday looked like it was a cracking day on the Forex markets selling Sterling.  I hope readers helped themselves to some of that sterling gravy!

With yesterdays trading and the FOMC announcements this evening I was expecting a dull session.  However my trades set-up and they matched my Relative Strength Analysis (find out more about that here) so I took them as per my plan with some minor Money management adjustments.  I was looking at shorts on GBPUSD, GBPCHF and GBPJPY.

It was a decidedly dull start to the morning and it was so slow that I wandered off for some breakfast.  I felt the trades were unlikely to trigger and I expected them to be pulled at their alloted time.

Well I was wrong! At approx 0720 somebody pulled the plug on Sterling and she dropped hard.  My orders on GBPUSD and  GBPCHF were triggered. The cable trade is outlined below:

1. Cable drops hard and triggers my short entry at 1.5036.  My stop is at 1.5051 and my target is 1.4991

2. Within a few short moments my trade hits its break-even point

3. Not surprisingly price bounces off the 1.50 handle.  My plan is to watch on the 1 minute chart and close early if necessary.  In this case there is no need as price slices down through 1.50 and hits my target at 1.4991 for +45. 

My trade on GBPCHF followed Cable and reached Break even point swiftly.  It then decided to hang around before returning north to stop me out for a scratch trade.  Similarly GBPJPY triggered my short order south but was defiantly lagging the other two sterling currencies.  It was a real laggard which I watched hawk-like.  Normally ‘the beast’ runs hard so I am always wary when it does not lead the other sterling currencies.  Anyway it went about 20 points positive but it didn’t show any real enthusiasm and so I decided to bring my stop to Break-even a few pips early.  By this time Cable had already hit its targets so there was no point in me trying to be greedy and eke out a few more points. Along with all the other currencies they reversed hard and I was taken out for a break even trade as opposed to a losing trade.

 So three trades: 2 scratch trades and 1 income trade.  Overall that’s +45 points for the morning and a nice 3:1 R:R on the trade.  Let’s see what the rest of the week holds for me.

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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