ForexSpirit

Since I’ve been recently posting monthly reviews to cover my time away from blogging, let’s get things right up to date and look at how July has been going so far for me.

I’ve had four trades closed out in July. The first was entered at 1.5850 on July 2nd and ending up being a breakeven trade, closing out almost exactly 24 hours later.

I snuck a trade in while I was on holiday last weekend, with a limit order at 1.5650 being hit on Sunday night (July 6th). This second trade was closed out on Monday evening by a stop loss at 1.5700 for 50 pips profit.

I had a buy stop order in at 1.5750, looking for a breakout from the week’s congestion, which got executed during the start of Thursday’s London session. Unfortunately this turned out to be a false breakout and my 50 stop loss was hit pretty quickly thereafter. I was back to being all square pipwise, but moneywise I was down just slightly, as the lot size of trade three was slightly larger than that of trade two (due to the increase in equity achieved by those 50 pips profit).

It wasn’t long before another breakout was on the cards during Thursday’s New York session.

I jumped back in with a market order at 1.5777. Seems like I’d missed all the action though, as price just meandered around 1.5780 for the rest of the day.

It didn’t take long before things picked up again. Friday morning and the rumour mill went into overtime on what the future of Fannie Mae and Freddie Mac might be. The sharks were circling and there seemed to be a good chance of more financial blood in the water. The US dollar got sold across the board.

My stop loss rule kicked in after EUR/USD came off its high for the day (which was near 1.5945), and I closed out the trade for 111 pips profit at 1.5888.

I have no open trades at this time but do have two resting orders. One is a limit order at 1.5650 that was placed on Thursday in case price decided to come back down to that level, as it seems to be a very strong support region. With price above 1.5900 and the whole IndyMac scenario playing out I don’t think we’ll be seeing that level again for a while.

My other resting order is at 1.5950, which is an Anti-Hedge (AH) entry for my very first Jacko style trade back at the end of April (the one which, just-my-luck, had to be a loser).

An Anti-Hedge trade is one where after getting stopped out on a trade for a loss, you wait until price continues a certain amount below that loss level (in my case I use 50 pips), before placing a limit entry to get back into the market at the price you were stopped out at. In essence, you’re looking to get back into the trade you originally had on, trying to take advantage of the longer term trend to erase your original loss and hopefully pull in some additional profit.

I think it’s going to be a pretty interesting week ahead. The mortgage loan crisis seems to be far from over and I’m sure Ben Bernanke, Hank Paulson and all the other financial bigwigs are working overtime this weekend.