ForexSpirit

Price action on EUR-USD during May showed that it’s still wise to keep a watchful eye on the US dollar. While there are many pundits saying that the dollar is on a one way ticket to depreciation-ville, there are still plenty of dollar bulls out there who would beg to differ.

I personnally think that the US dollar bulls are having another moment in the sun, just like they did at the start of the year, but that there are still too many niggling doubts about the US economy to see a true reversal in the dollar’s fortunes just yet.

During the course of May I closed out eight trades. Six of those trades were profitable, but not extravagantly so, and thus were just enough to counter balance my two losing trades. Unfortunately the cost of holding open positions from higher up in my grid has been greater than the few pips I made from the trades themselves.

The cost of trading, which includes the spread and daily roll-over rates, must never be neglected. It is always important to remember that you have to generate positive trading results to first pay your trading costs before you can even begin to see any profitability for yourself.

My account equity change for the month of May 2007 was -1.5%.