Week In Review

This week, 1,146 pips found their way into my account. This is an average of 229 pips per day which is above my baseline average of 150 per day. We had great price movement this week in the pairs which allowed me to close out most of the positions I took. I had taken a couple of longs(short dollar and/or yen) and those are the one that are still open and against me a fair amount of pips. Nevertheless, I do think the pairs will retrace a bit before heading lower and if not, well, I'll be able to close them someday as prices generally tend to revisit the same places over time.

This week my drawdown averaged about 4,000 pips. I'm keeping an eye on it or course, but it isn't too much of a concern since my drawdown turnover(drawdown pips divided by # of pips made per month) is quite low. For example, I may average a 4,000 pip draw down, but if I've churned out 4,000 pips in closed trades in the month, I've effectivly raised my capital the same amount as the drawdown which means the drawdown is now a lower percentage of overall account size. And really, the drawdown is simply an inventory I maintain just like a store. And as prices move I'm able to sell that inventory for a profit. So it is natural to maintain a drawdown sort of like a store maintains an inventory.

Waking up pippy

Wow, I woke up at 6am and logged into my computer from my phone in bed and some several positions in good profit! Praise God! I lept out of bed and plopped down in front of the computer as my eyes burned from the bright monitors. I had USDCAD and EURJPY in profit and looking like they had stalled a bit, I closed them for 50 pips and 30 pips respectively.

Then I looked at my closed positions tab and saw that my auto "take profits" had been hit on three others while I slept. Yehaw! AUDUSD for 43.5 pips, GBPUSD for 46.3 and GBPJPY for a nice 121.9 pips.

Wow, I'm so thankful. I love when auto TPs get hit while sleeping.

I closed that double GBPJPY position at 145.86 which netted 64 pips. For me, that's equivelant to 128 pips because it was a double. It was only a double because I forgot to change the position size and I took the trade on news a while back. That trade opened on 1/5/2010 and was able to close it today. That's always nice.

At its max, that GBPJPY position was about 350 against me. Of course I've had GBPJPY trades go against me more than 1,000 pips on a number of occassions so trading small and letting them ride is key.

What I need to develop more is the confidence of which direction the yen pairs are moving long term.

GBPJPY has already dropped 200 pips today, but I do have a double position short here at 146.50 that I would LOVE to be able to close for 60 pips or so. I'm hoping for one more spike down here!

There is a rising trendline on the daily at about 143.00 which I expect it to touch sometime soon. Sure I'd love to close the position there for 250 pips, but that is simply not my trading style.

Trade profits update

Over the last few days, we had a pretty good sell off on EURUSD and the yen pairs. Most of my positions closed have been fairly quick trades, but I was able to close a couple of positions from back in September 2009. So over the last three days, I've booked 672.9 pips. That's above my baseline average, so I'm happy about that.

The Start of a Record

I've debated the merits of starting a blog about currency trading(Fx) for a number of months now. As I have read Don Miller's blog over at http://donmillerjournal.blogspot.com/ , I have been particularly inspired not only because of the great posts he puts up there, but also because of what I feel is lacking in his blog. To me, there is not enough about the daily grind of the trade.

I want to record the daily grind of my trade with a few purposes in my. One is to crystalize my thoughts on the Fx markets. Two, is to gain a better perspective on my habits and methods as a trader. Lastly, to be of some help or inspiration to others. I sort of feel bad putting that last, but the reality is that this blog will probably not be very widely read at all, so if I do it primarily to help others, it will simply be a waste of time.

So there I have it, and I hope it goes well.