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One of my trades: EURUSD Long 500 pips

Posted by Satuki On June - 17 - 2010

I took a small long position in EURUSD @ 1.1963 on 6/7/10.  It is only 1 lot (worth 100k), which is considered a small position in Forex.

 

Now I have over 400+ pips in profits on paper now.  I was aiming for a 500 pip move here.   And the initial stop loss was set @ 1.1877,  which is less then 100 pips.   So the risk reward ratio is very good here.  Now I am trailing it.  So the profits are almost locked since Forex rarely has gap ups/downs.  That is one of the reasons that I only swing trade Forex in a regular account.  

 

Here is the trade.  

 

 

 

See my post about this trade on StockTwits here.  Look at the time stamp of that post.  It was posted close to real time.

  

 

If you do not trade Forex,  a 500 pip move for a 1 lot position is worth about 5k profits in USD.


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Most Commented Posts

Forex, Trading
  • Dom

    What platform do you use to trade FX?…i.e. who is your broker?

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    I use Interactive brokers for executions and TradeStation for charting

  • Dupont

    I don't really get the idea behind that trade, can you explain it?

    The fundementals are still very bad about europe, i wouldn't expect the up move to continue for much longer.

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    You are right about the EURO’s fundamentals. If you are a mid term or long term trend follower, you should short into a bounce like this.

    But I am a short term speculative trader. My decisions are normally based on technicals . After such a big drop, any whiff of “good” news will cause the shorts to cover to lock in profits. I was aiming for this short squeeze.

    This looks like “catching a fall knife”. But with proper risk control, “catching a falling knife” is rewarding.

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    You are right about the EURO's fundamentals. If you are a mid term or long term trend follower, you should short into a bounce like this.

    But I am a short term speculative trader. My decisions are normally based on technicals . After such a big drop, any whiff of “good” news will cause the shorts to cover to lock in profits. I was aiming for this short squeeze.

    This looks like “catching a fall knife”. But with proper risk control, “catching a falling knife” is rewarding.

  • keywaa

    Do you use IB because you don't want to use Gain (TS) and their spreads? I would trade Forex with my TS platform but the added spread that Gain creates makes me want to trade the currency futures with TS instead.

  • Dupont

    Nice trade anyway!
    When i try to do a countertrand trade, i nearly always loose money :D

    Personnaly i try to trade “very simply”, it is to say, buying at the support and selling at the resistance, only in the direction of the trend (on a daily bar chart, no intraday for me).

    Can you elaborate about the reasons that pushed you to buy at that price, because fundamentaly speaking, we still had moody's downgrade of Greece's bonds (even though the Greece's bonds market was already deserted, leaving the ECB alone)?

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    As you said “simplicity is key” . There is nothing complex about the entry. It was a small double bottom on the 60 min chart. Of course, it requires “convictions” to take it. Quite a few people warned me not to take it because it was and still is in a downtrend.

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    Correct. IB charges commission for each Forex trade. So their spreads are very tight. “By TS”, are you referring to “ThinkorSwim”? I know “TOS” basically makes money from the spreads. TradeStation has tight spreads too.

    I believe when your positions get bigger, it might be advantageous to have tight spreads

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    I am still holding it….

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    I am out @ 1.2552.. Close to 600 pips +

  • http://www.momdaytrader.com/blog/ Satuki (Trader Mom)

    I am out @ 1.2552.. Close to 600 pips +

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