Plenty to report today and an encouraging start to operations.
My time for trading this system is from 6.00am to 10.00am which may be extended if I am in a trade.
My minimum stakes are 50p per point initially.
The first port of call was to check for any news items and there was only 1 high impact item at 9.30am, which had a dramatic effect on the market.
I traded the GBP/USD currency pair and having traded down in the overnight market, a reversal trade was highlighted at 6.30am. I set my entry and stop points and it came to a risk of 26 points x 50p = £13.
I highlighted previous high points of support and resistance and used these as profit targets. I entered the trade to BUY @ 1.5516. My stop was set @ 1.5490. The profit targets were noted at 1.5524, 1.5528 and 1.5540.
After a bit of sideways trading the move up began. My first 2 profit targets were not really enough to scalp although I did move my stop up a bit to reduce the risk rightly or wrongly. The 1.5540 was worth aiming for and moving my stop all the time. I decided to exit at that point for a 21 points profit after the spread. It peaked at 1.5545 before retracing back to my entry point and then climbing again to a peak of 1.5581.
Was I upset, on the face of it yes, but during the trade I had kept moving my stop to close to break even and the retracement would have ended my trade for no profit or loss before climbing again.
If I had kept my initial stop as it was, it was never in danger until the high impact news item at 9.30am would have wiped it out.
You had to be there to witness it.
If I was still in the trade, the sensible thing to do would be to move the stop to break even or a bit in profit in case the news item went against me. My entry at 1.5516 to a peak of 1.5581 was a profit in excess of 60 points so I could have moved my stop to say 30 in profit in case the worst happened.
It did. At 9.25am the high of 1.5581 fell to a low of 1.5483 in a matter of minutes, nearly 100 points.
So overall I was glad with a 21 points profit.
An encouraging start and see what tomorrow brings.
Tuesday morning and the first thing to note is that a high impact news item is due at 9.30am.
I get my first suitable signal to SELL at 8.00am and set my entry point at 1.5443, all this is in line with the net trap system - see my other blog review for that. My stop is set at a recent high of 1.5466 so my risk is 23 points or £11.50 at 50p per point.
I note recent support and resistance levels of 1.5427 and 1.5425. The first level was reached then retraced, at which point I was kicking myself for not taking the profit, then the second level was reached, at which point I scalped for 16 points profit after the spread. With the news item approaching, rightly or wrongly I bailed out.
I didn't move my stops on this occasion, but with the benefit of hindsight, I could have remained in the trade as the price kept falling upto 9.30am with a low of 1.5377.
Not to worry though, I'm happy with 16 points and added to yesterdays 21, I am 37 up after 2 days = £18.50.
Hope for the same again tomorrow.
Wednesday morning sees another high impact news item due out at 9.30am so I need to make sure I am out of a trade near that time.
I get my first suitable signal to SELL at 7.05am at 1.5433. My stop is set at a recent high of 1.5452 so my risk is 19 points. Notable recent lows of 1.5423, 1.5420 and 1.5411 are targeted as profit targets but only got slightly into profit before retracing and taking my stop out for a loss of 19 points. Not a good start.
Another SELL trade was noted at 8.05am with an entry point of 1.5430 and a stop at the recent high of 1.5456. So very similar to my first trade.
I used the same lows as profit targets, but was also aware of the upcoming news item so I hoped to be out of this trade ideally no later than 9.00am.
After alot of sideways movement, 1.5420 was hit on the 8.45am bar and hitting a low of 1.5414. I exited the trade for a 10 points profit before it retraced again and would have taken my stop out had I continued.
Not a great scalp, but it proved to be the right call at the right time so I ended the day with a loss of 9 points. It was a bit of a choppy morning looking back on the charts, but there's no great damage done.
So overall after 3 days and 4 trades I am showing a profit of 28 points = £14.
See how tomorrow goes.
Thursday morning sees a high impact news item due out at 8.00am, earlier than normal, so I will trade around this.
My first suitable signal was at 7.15am, which I chose to ignore even though it went on to make over 20 points profit aided by the news at 8.00am.
Another setup at 8.55am to BUY. As the days high of 1.5476 was during the early hours, I set that as a suitable and worthwhile profit target as my entry point was 1.5456, my stop at 1.5425, as that was a recent low which had found some support.
So my risk is 31 points. As there is no news at 9.30am today, I take the trade and my target was reached on the 9.20am bar where I scalped for a 20 points profit. I could have let it ride and move my stop to break even or into profit as the price kept rising. It peaked at 1.5502 around 10.00am so I decided to call it a day with a 20 points profit.
So after 4 days I am showing a profit of 48 points.
Very pleased with that and hope for the same tomorrow.
Friday sees another high impact news item due out at 9.30am so I will trade around this if applicable.
My first suitable signal is at 7.05am to BUY. My entry is 1.5453 with my stop at a recent low of 1.5431. So my risk is 22 points.
A recent high of 1.5462 was noted and 1.5473 was the high of the early morning session. I aimed for the latter and 20 pips profit. My entry was triggered on the 7.30am bar and hit my target level twice before retracing and breaking through on the 7.45am bar to a high of 1.5498 before retracing again back to my profit target and climbing again to a high of 1.5553.
If I had held my nerve, I could have moved my stop in line with the price rising to at least break even, as all the indicators highlighted a continued rise.
Not to worry though, delighted with the 20 pips profit and a great way to finish the week. That will do for today.
Total profits after 1 week = 68 pips.
See you next week.
Tuesday morning and the first thing to note is that a high impact news item is due at 9.30am.
I get my first suitable signal to SELL at 8.00am and set my entry point at 1.5443, all this is in line with the net trap system - see my other blog review for that. My stop is set at a recent high of 1.5466 so my risk is 23 points or £11.50 at 50p per point.
I note recent support and resistance levels of 1.5427 and 1.5425. The first level was reached then retraced, at which point I was kicking myself for not taking the profit, then the second level was reached, at which point I scalped for 16 points profit after the spread. With the news item approaching, rightly or wrongly I bailed out.
I didn't move my stops on this occasion, but with the benefit of hindsight, I could have remained in the trade as the price kept falling upto 9.30am with a low of 1.5377.
Not to worry though, I'm happy with 16 points and added to yesterdays 21, I am 37 up after 2 days = £18.50.
Hope for the same again tomorrow.
Wednesday morning sees another high impact news item due out at 9.30am so I need to make sure I am out of a trade near that time.
I get my first suitable signal to SELL at 7.05am at 1.5433. My stop is set at a recent high of 1.5452 so my risk is 19 points. Notable recent lows of 1.5423, 1.5420 and 1.5411 are targeted as profit targets but only got slightly into profit before retracing and taking my stop out for a loss of 19 points. Not a good start.
Another SELL trade was noted at 8.05am with an entry point of 1.5430 and a stop at the recent high of 1.5456. So very similar to my first trade.
I used the same lows as profit targets, but was also aware of the upcoming news item so I hoped to be out of this trade ideally no later than 9.00am.
After alot of sideways movement, 1.5420 was hit on the 8.45am bar and hitting a low of 1.5414. I exited the trade for a 10 points profit before it retraced again and would have taken my stop out had I continued.
Not a great scalp, but it proved to be the right call at the right time so I ended the day with a loss of 9 points. It was a bit of a choppy morning looking back on the charts, but there's no great damage done.
So overall after 3 days and 4 trades I am showing a profit of 28 points = £14.
See how tomorrow goes.
Thursday morning sees a high impact news item due out at 8.00am, earlier than normal, so I will trade around this.
My first suitable signal was at 7.15am, which I chose to ignore even though it went on to make over 20 points profit aided by the news at 8.00am.
Another setup at 8.55am to BUY. As the days high of 1.5476 was during the early hours, I set that as a suitable and worthwhile profit target as my entry point was 1.5456, my stop at 1.5425, as that was a recent low which had found some support.
So my risk is 31 points. As there is no news at 9.30am today, I take the trade and my target was reached on the 9.20am bar where I scalped for a 20 points profit. I could have let it ride and move my stop to break even or into profit as the price kept rising. It peaked at 1.5502 around 10.00am so I decided to call it a day with a 20 points profit.
So after 4 days I am showing a profit of 48 points.
Very pleased with that and hope for the same tomorrow.
Friday sees another high impact news item due out at 9.30am so I will trade around this if applicable.
My first suitable signal is at 7.05am to BUY. My entry is 1.5453 with my stop at a recent low of 1.5431. So my risk is 22 points.
A recent high of 1.5462 was noted and 1.5473 was the high of the early morning session. I aimed for the latter and 20 pips profit. My entry was triggered on the 7.30am bar and hit my target level twice before retracing and breaking through on the 7.45am bar to a high of 1.5498 before retracing again back to my profit target and climbing again to a high of 1.5553.
If I had held my nerve, I could have moved my stop in line with the price rising to at least break even, as all the indicators highlighted a continued rise.
Not to worry though, delighted with the 20 pips profit and a great way to finish the week. That will do for today.
Total profits after 1 week = 68 pips.
See you next week.
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