28/5/2012 0 Attack – Re-Attack on the Dow Jones Part 2

I’ve been saying for a while now that I was shorting Global Indices based upon my analysis of the charts and using various vehicles (CFDs, Spread-Betting, DMA & Binaries) to access the market and build positions in line with my view.  I wrote about how at the start of the month I was stopped out of my short position on the Dow Jones when price poked its nose above my 13320 No Touch Barrier Trade (it hit a high of 13336 before sliding away). You can read the full details here.

That was a great example of picking the right direction…and still losing money!  But it was my fault, no-one elses. I had my barrier too close to the recent action.  That was my lesson learnt.  I still felt that the overall trend was likely to be down and so I took another short No Touch Barrier Trade on the 4th May. The detail of which are below.

Point 4 on the chart was were my last No-Touch Barrier Trade had come unstuck. At position 5 you can see where price had really come off the top and was heading lower. (If memory serves me right this was NFP day and the US job numbers were woeful.)

This is where I took a no touch barrier trade on my BetOnMarkets account for the 13400 level (point 6 on the chart) with a time deadline of 25th May.  The level was sufficiently enough the recent highs for me to feel safe (having learnt that lesson from the previous position.  No real reason for the 25th May other than I was going to be occupied the last week in May and was able to get a good price of $550 for a $1000 payout. A good return for a 3 week trade.

As we now know the Dow Jones just collapsed over May and I was pretty confident that the trade would play out which it confirmed this morning. (The trade running out at 23:59 on Friday 25th May).

Overall a good trade.  I’m much better at predicting where price is less likely to go and I’ve learnt the lesson of not having your barriers too close to recent highs or lows. I’ve a few other positions in play and will update you on them over the next few weeks.

Trade well,

Paul

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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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