I generally only see, no doubt like many traders, what I want to believe. I’d really like the economy to be getting better but all around me I see anecdotal evidence of doom and gloom. I was hoping like many that the Indices would rise, especially the SPX. In short, I was hoping for 1400.
The US Dollar took a turn today for the better on Friday, which had major implications on my trading.
All week I have been waiting to see if the EUR/USD would reverse to the upside on me even more, making me feel the need to hedge my medium term short in this pair with a long trade too. I gave myself the target of going long if the price could close above the daily 8 ema. It didn’t. Though it rubbed against it like a cat waiting for its saucer of milk right throughout the week!
The USD/CHF was the opposite, it didn’t want to break to the upside and was against me for the whole week until today.
The only trades that have been going my way are, EUR/GBP, GBP/CHF and EUR/JPY. Today they have all pretty much made up for lost time and I am happy with where they are at now.
The difference with my demo account to the live one is that the demo is running on an automated strategy and this week I think it topped a 30% return for the month so far (why does it never work this way in the real world?!!). It has given some back today as the trades that were open were reversed but overall I am still very happy with the consistency the automated trades it is making and will put this into ‘live’ mode soon. The non-discretionary aspect of automated trading is what makes it so strong. Here’s the link to see how it does – http://www.myfxbook.com/members/iamnev/fxcm-1247255/339999/4pw2fDWtXBPo3JhG5wi6
I was talking to my mentor today and I said that I was sure that my live account had a threshold that I keep hitting psychologically. I commented that I kept seeing the same numbers over and over again. To the point where I nearly closed all the trades again to defend what I thought the lower limit of my account balance should be. He said that it was all in my head and as if to prove a point my account jumped 10% today. If I had closed out my trades and defended the level in my account I wouldn’t have reaped the rewards. Another reason to keep to the strategy rules.
GKP has been on my watch list since it recently moved out of it’s down trend. On my blog I have been recording when I thought the moves were significant and yesterdays move was very Bullish. Today confirmed that.