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Monthly Archives: December 2013

Just as I did the short trade in the GBPUSD, the AUDUSD also looked good from a charting point of view, so I also executed a short AUDUSD at 0.9112 with a stop loss at 0.9130.

Later on in the night, I squared the position at 0.9028 for a trading profit of 102bps.

My charts looked great in the evening of December 11th, with the Ichimoku and Stochastics indicating a potential short opportunity in the GBPUSD.

So I executed a Short GBPUSD at 1.6390, stop loss at 1.6410.

An hour later I took profit at 1.6363 for a trading profit of 47bps.

My charts; Ichimoku and Stochastics indicated a possible break up of the GBP, it started at 1.6340, at 1.6350 I bought GBPUSD with a SL at 1.6330.

Today, it hit a high of 1.6462 and I decided to lock in my trading profits and sold the position at 1.6447 for a very handsome 97bps.

Nice Christmas present.

Last week on December 5th, I saw an opportunity based on my charts; gold appeared to have bottomed at $1,211, though the greater volume of trades was done at about $,1,219.

Recent high on November 29th/30th was about $1,254.

I am not sure whether there is enough momentum to bring it back to the last high, it’s currently trading at $1,244.

Then again, with the budget looming in January and the debt ceiling in March, maybe, it may be worth the while to hold the position.

Hmmmm………I am up $12/-, and to sell an option till January 30th, 2014 at $1,246 will give me premiums of $30/-.  Sounds like a good trade.

Done, just executed selling a call option XAUUSD at $1,246 expiring January 30th, and receiving premiums of $30/-.

My charts set up a potential short trade on the GBP based on Ichimoku and Stochastics.

I decided to short the GBPUSD at 1.6371 at about 4:45pm and I squared the position post BOE at about 8:50pm at 1.6333 for a decent trading profit of 38bps.

However, it’s past midnight here in Singapore and the GBP has continued to soften to 1.6320………oh well……at least, I still locked in a profit.

This afternoon at about 4pm, my technicals; ichimoku, ma and stochastics indicated a potential trade.

I decided to short the GBPUSD at 1.6380 and then squared the trade right after the weaker Services PMI data at 1.6338 for a trading profit of 42bps.

This afternoon at about 4:25pm, my charts; ichimoku, ma and stochastics showing a possible trade.

I decided to short the USDJPY at 102.70, I kept watch on the trade and later on squared the trade at 102.35 at about 9:25pm.

Ok, the take profit level was triggered just a few moment ago, the spot rate is now at 1.3545.

So you see, it’s good risk management to establish a take profit level when your trade is ITM – in the money.  So if the money continues moving in your direction, you continue to make, but if the market begins to backtrack, then, you would be taken out at your take profit level.

So for this Short EURUSD trade, we locked in a trading profit of 58bps.

The JPY has weakened nicely pass the 103.00 level.

I believe there’s probably alittle more room to move upwards, so I am placing a take profit level at 103.00 and continue to carry the spot position.

If the JPY continues to move southwards, I may consider writing options as a strategy of placing a take profit level and at the same time earn some premiums.  I will come back to all of you to explain this strategy.

Now that the EURUSD has moved significantly lower and I believe there’s probably alittle more room to move downwards, I will hold the spot position.

However, it’s important to manage the risk dynamics, so I am placing a take profit level at 1.3540.