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.
This afternoon my 15min technicals told me to Short the EURUSD which I did at 1.3598 with a SL at 1.3620.
This week is going to be a very busy week for all of us with critical data coming out in the middle of the week and end of the week. Let’s all make some money this week, shall we?!
I looked at my 15 min techinicals and everything was showing me that I should Long USDJPY which I did at 102.40 with a SL at 102.10.
October was a difficult month for me as I really couldn’t ‘sniff’ out trading opportunities, maybe, it’s because I am already comfortable with what I have made from trading year to date that I didn’t want to take on any unnecessary risks.
Nonetheless, as traders we owe it to ourselves to continue trading!
I did 2 options and 3 spot trades, all the trades were profitable giving me an absolute profit of 28.6%.
Year to date, my absolute return is 250.1%, adding on this month’s trading profits, the total absolute return for this year so far is 278.7%.
I did a quick trade last night during NY session; entered Long GBPUSD at 1.6328 and squared the spot position at 1.6369 for a 41bps trading profit.
Cie La Vie………….I knew it was a bet on my part which is why I positioned a smaller nominal size on this option trade.
Well, as it turned out, ‘rumours that ECN may implement negative interest rates’ tanked the Euro by more than 150bps.
The call option expired worthless and I suffered a loss of 28bps.
I had to leave my trading desk this evening, but felt that the EURUSD was going to move up somewhat, based on my technical analysis; Ichimoku and possible better ZEW Economic Sentiment at 6pm (Singapore time).
So at about 5pm, I bought a small position, one day call option on the EURUSD expiring November 20th; Spot: 1.3515, Premium: 28bps and Breakeven: 1.3543.
Unfortunately, the ZEW Economic Sentiment came out lower than forecast at 60.2 versus 63.1, more importantly, is that the German ZEW Economic Sentiment came out flat at forecast of 54.6, so still staying above the 50 threshold level. What is more important is the counterbalancing stronger Germany versus the rest of the weaker Euroland.
EURUSD has stayed in a narrow range since issuance of data between 1.3491 and 1.3519. Let’s see if my trade fairs better tomorrow, we still have time till NY 10am.
I decided to square off this option prior to my leaving for my holiday.
Last Wednesday, the AUDUSD continued to fall and it went under 0.9300, I sold the option at 0.9285, you will recall that my breakeven was 0.9533, so this trade gave us a nice trading profit of 248bps.
So, while I was targeting for a 1.6:1 payout, we were fortunate and managed to secure a payout of over 2.4:1, this was a great trade.
What is ironical about the fx world is when I was away on my holiday, on November 21st and 22nd, the AUD dropped another 100bps to 0.9143………..hahahahahahahaha.
Then again, who can predict that the AUD will collapse again so near the expiry date, I certainly did not. More importantly, I would not carry any open positions when I am away on a holiday.
I am born in the Year of the Tiger.
The Panthenon Investment Group 