Dec10 – Market Analysis

Personal observations

9.50pm (Tue): My productivity is not the best at the moment – all my attention and energy seems to go on the JBT trades.  I have done 12 in the last two days.  However the net result of those was a loss of 2R.  I had to do a little more soul-searching at the Teasmith Bar.  Definitely this trading endeavour is not an easy one.  But being able to make £20k/month (and this is reasonable given my bankroll) should be motivating enough for me to work hard and to keep going.  This whole thing is meant to set me up for life.  I think the key point is that I must not put a huge amount of pressure on my shoulders every time I put on a trade.  I think I am trying to forecast the entire feasibility of the trading operation, and how this will affect the next 20-25 years of my life, on the basis of the outcome of each single trade.  It’s completely unnecessary for me to exert this pressure on myself.

Update on STAM positions

  • The S1B GBPAUD trade was closed for a scratch result. I had moved the stop to BE after price went around 70 pips in my favour.  After getting stopped out, price fell well below my original stop loss. Final result: -0.1R
  • The S1B GBPJPY was also stopped out.  I took off 1/3rd of the position on Monday night (+97 pips, stop was 70-75 pips) and this morning raised the stop to +15 pips.  This morning the trade was around +130 pips – the pair then declined the whole day and I gave back a whopping 115 pips!  I guess I should have been a bit more protective about my trade!?  Final result: +0.7R
  • S1B Dow trade – at Wall Street close my trade was showing -30 pips (stop size is 80 pips).

Interesting point to note about CMC Markets – yesterday their platform was down and nobody was able to log on.  I rang CMC and it took a few minutes to be connected to a staff member, who offered to close any open positions over the telephone.

STAM Analysis – Equity Markets

See earlier post – I took my 1st STAM trade in the equity markets.

STAM Analysis

No changes in the STAM ratings compared to yesterday.  Thus we have in the strong camp EUR, GBP and CHF; in the weak camp AUD, JPY and CAD; and finally NZD and USD in the neutral territory.

Looked through Yen pairs – they are all going through a pullback.  Will this carry on for another day, or will they start rallying again tomorrow?

Interesting setups/next action point

  • Check CADCHF in the morning for a short trade.
  • Check AUDNZD for a short trade (can’t trade on basis of incomplete candle, looks like the 11pm will turn into a bearish pinbar, cannot trade ahead of scheduled AUD and NZD announcements – they will occur in the next few hours)
  • Cable – prior to the JBT session, consider the big picture – it looks rather bullish, say on the W chart.
  • EURAUD – also looks like a good trade out of the demand zone – which has been holding several times over the past fortnight – again, am prevented from entering by the news announcement
  • EURUSD – wait for a decent pullback in JBT.

S3 – did not have time to look for S3 setups 

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One Response to Dec10 – Market Analysis

  1. 6.30am – somehow I misread the forexfactory calendar. The AUD and NZD announcements that I had been anticipating are in fact early on Thu morning, not early Wed morning – so those setups I talked about, I could have actually taken!! Doh!

    Like

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