ForexSpirit

September has been a pretty slow month so far with regards to active trading. This has been due to two main factors. The first is that I have been so busy at work that I have had very little free time to devote towards trading. Secondly, the dollar has been strengthening all month, which has presented very few opportunities to go long euro (my one direction).

I have five open positions at this time, all but one of which are currently in the red. My oldest position was opened on the last day of August, at around 1.28. This position was my ‘toe in the water’ for when the euro broke out of the current median grid (i.e. for when it pierced 1.29 decisively).

My next two positions were opened when the dollar gained significant strength on the 7th. One of these positions was to have been a simple birthday trade (as it opened at 1.2722), but I never placed the profit target and the small rally was over before I realised my mistake. The fact that I was so busy at work and did not perform my periodic checks of the market throughout the day is the main reason for this mistake. If I am ever this busy again, and can not devote the time to maintain regular checks on my open positions then I am better off not making the trade in the first place.

The last two open positions were entered into yesterday, after the release of the retail CPI data. These two entries were made given the support around the 1.265 area, as well as the expectation that comments from the G7 meeting taking place in Singapore would recommend the strengthening of Asian currencies, which obviously means that the dollar should weaken. The last time the G7 made a comment to this effect, back in April of this year, the dollar sold off significantly.

There is lots of data next Tuesday, along with a Fed rate announcement on Wednesday. If dollar strength continues throughout next week then I will look to lighten my load by closing out my high Q3 position, and potentially one of my Q2 positions. My current gearing is 8.5:1 which is almost to my allowed maximum of 9:1. I am unable to make any new entires unless I close out some of my higher entries for a loss, or I’m able to take some profits on my newest positions.