Weekly Swing Trading Round Up 4th November 2011

Weekly Swing Trading Round Up 4th November 2011

It’s been a fairly difficult Week to find suitable swing trades because the wild swings and volatility remains dominant in the market due to the ongoing Euro situation.

Isn’t it crazy how Billions of Dollars fly in and out of so many markets on every single Euro rumour within minutes, and then a rumour of another rumour has everything flying back to safety. I’ve been called a nervous trader before but some of these traders are outragous!

It’s difficult to have conviction in swing positions when supports and resistances are being trashed and multiple buy and sell signals are occurring intraday on your chosen swing trade. USD:CHF was a wild ride this week following my swing short entry that was based on solid TA, but I just couldn’t get comfortable in the trade as gut feeling kept telling me something wasn’t right. I entered short on Wednesday which happened to be FOMC day and historically FOMC has had the ability to create medium term trend changes in USD pairs and to make it worse, I was unable to be near my trading screen around the time of the release so I chose to tightly trail the stop loss just in case. In the event price did spike and I was stopped out for a gain of 12 pips. I re-entered the trade that evening with wider stops, but each time I flicked up the chart price would be heading rapidly in one direction, and then the next. Whilst trading a 150 point range with my short entry somewhere in the middle I eventually made a decision that if price crossed my entry level one more time I would close the position. Sure enough earlier today price rallied hard so I logged in to close out the position at breakeven. I was just a few seconds too slow and closed out for a 4 pip loss which officially makes this the first losing swing trade since starting this blog!

The only other real swing trade taken this week was a GBP:JPY long from 121.95 on Monday. I woke up Tuesday morning and BOJ had intervened in the FX market causing a 540 point rally with a high of 127.34 which exceeded all of my initial targets. As price began to retrace relatively quickly I made the decision to close half of the position to bank a 435 pip profit. Probably the best single overnight gain I’ve ever made and it has to be said, the BOJ rumours I previously discussed were a great influence in my search for a tasty looking Yen short.

This week was without doubt a great one for day traders, particularly with Indices leaking points all over the place. DOW was most trade-able for me and I was suprised to have racked up a total of 40 separate DOW day trades this week!

Whilst reading some old trading articles I came across a supposedly genuine quote that gives one of the best definitions of irony I’ve come across in a while:

“I realized from a very early stage that the market
is a whole rigged job. There’s no chance that
investors have in this market.”

—Bernie Madoff


Finally, I’ll leave you to enjoy the Weekend with this chart…. It’s taken over 4 years to get here, and finally, EUR:GBP might just start to produce some nice trade-able trends rather than the chop we’ve had to endure for so long:

The Weekly 200 MA tagged for the first time since September 2007:

Have a great Guy Fawkes  Weekend, and pop back Sunday evening where hopefully I’ll have some trading ideas posted up for the week ahead!

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