27 Nov Weekly Swing Trading Round – Up; 26th November 2011
The main theme this Week has continued to be shorting strength intraday on Indices. It would have made a lot more sense to have just stayed short from the beginning, particularly as the whole topping process had been a “lead” we’d been following from the outset. But, if you yourself are a conservative trader, always trying to minimise risk, then I guess you’ll understand where I’m coming from and how difficult it can be to commit to a particular direction during extremely volatile times.
My long bias in GBP:NZD remained throughout this Week, however, a red daily candle at resistance has got me watching for a possible reversal, or signs of a consolidation ahead of a break higher. AUD:NZD has also moved in a similar fashion, so, I think it’s worth keeping an eye on NZD pairs in general for any signs of reversals.
Positions I currently hold include the GBP:JPY long – I did let this go beyond the stop loss level I’d originally calculated simply due to the fact that volumes were absymal on Thursday across Indices and FX due to Thanks Giving holiday in the U.S, therefore, I chose not to allow the low volumes frighten me out of any positions and will re-evaluate as volume picks up next week. Still also holding the GBP:CAD swing longs but not much is happening there really and I don’t feel the risk is low enough for this trade to warrant a blog post just yet, but you’ll be the first to know once things really start to get moving.
U.K traders who use Financial Spread Betting as their means of trading will probably know that IG have changed their basic charting package to a much more inferior in-house package so like many other retail traders I’ve been looking for a new home to trade from. Don’t get me wrong, their Advanced charting package is great but for me personally it’s not always practical to use it intraday. I’ve been trialling a Capital Spreads account for a few Months now noting that they have also recently downgraded the quality of charting that was on offer and their platform suffers occasional hiccups too which puts me off using them for day trading, and for swing trading you do need wide stops to cover some of the huge overnight spikes they seem to have on minor currency pairs, spikes that are not replicated in the underlying market, but Capital Spreads reassure me that any trade stopped out through a price that was not reflected in the underlying market will be re-instated. I’ve also opened an account with City Index as they still have a good quality basic charting package, but unfortunately I’ve been trying to pay money in for over a Week now and their system just wont accept my payment details, for which they blame my bank!
Trading with UK spread betters does appear to be a murky world at times, but I’m sure the advantages very much outweigh the disadvantages, more so when looking at the problems those who used MF Global are currently facing.
Maybe I’ll do a full comparison between the various spread bet providers one day if there is enough interest for it…..
In the meantime, most of the trades detailed over the last week on the blog remain either in play, or the ideal entries failed to materialise, so going forwards I don’t think there will be a lot of high probability entries in readiness for Monday when volume returns to the markets, so I’ll attempt to get a few new swing trades prepared on the blog ahead of Tuesday.
Have a great Weekend.