07 Jul This Week’s Swing Trading Round-Up; 7th July 2013
Another quiet Week with the only trade taken being a re-entry of a previous set-up on EUR:AUD. Since Thursday’s sell off price has recovered a fair bit so it is now my intention to lower the stop loss to just above the 1.4290 area which will allow for a 61.8% retrace of the current “correction”. I think strength above 1.4290 would suggest bulls remain in control and if a topping process is taking place it could take longer than anticipated. A stop out at 1.4290 would close the trade for a 50 pip loss whereas as things stand the trade is showing a profit of 80 pips.
Of course I could bank the 80 pips now and forget about the trade but there is a possibility of a much larger swing move ahead and I think its worth the risk of waiting a little longer to calculate the odds of such a move playing out.
Beyond that I don’t have any solid swing trading set-ups other than a few that are some days away from proving themselves. These are mainly in the form of channel back tests on USD:JPY, FTSE and DOW.
Day trading has not been kind to me over the last 10 trading days having caught me out on some of the strange intraday volatility we’ve been seeing. Higher highs followed by lower lows and then higher highs again has made it incredibly difficult to trend trade. Under such conditions its best to trade small with wide stops but even still its difficult to identify such conditions before they start!
In the meantime I remain committed to finding some worthwhile trades as there’s a hell of a lot of catching up to do if I’m going to get anywhere near matching last Year’s profits with half the Year already gone.
It’s been a scorching hot Weekend here in London which makes a nice change following the Winter that seemed to last forever. Therefore I’d expect London trading volumes to remain subdued for as long as this weather continues.
Hope you’re also making the most out of the sunshine!