EURGBP closed at target
Posted by The Lonely Trader on January 6, 2009
Finally, the euro broke while the pound held its ground…sort of. Target was 9122 at the 50% retracement from the as yet imaginary parity (ask me why I measured from there some other time). I believe this pair will go lower eventually, to at least 8800. I don’t want to press my luck. Trade closed at 2:07 as I slept, for a gain of roughly 736 pips. Now my focus is shifting to the euro. I expect a bounce here shortly, my plans allow the trade to further develop much farther (or is it further?) down the price axis.
I’ll post the worksheets for both this and the NZDJPY trade later in the week. Remaining trades are:
USDJPY long at 9035 (target 9515)
EURUSD long at avg 13858 (target 14680)
Both plans may change in the coming hours or days.
Gav said
Nice one for EURGBP. Good job man.
The Lonely Trader said
Thx Gav. Are you still short?
The Lonely Trader said
Er…I meant to ask if you were still long.
Mike K. said
Patience and discipline do pay. Good finish. What was your leverage on original position in EUR-GBP, 1:1 of the account value? I’m just curious if you’d be able to do another “double” if the price got to, say, parity. I’m sure you trade more than one account, so even blowing one up is not the end of the world, but it must not have been comfortable when price touched 0.98. However, all is well what ends well.
The Lonely Trader said
Mike, I had another order just below parity — and had plans to hedge above parity. And yes, I do use subaccounts. My leverage is 10:1. I actually thought about entering at 9800 — I was tipped off by a friend who can call turns with uncanny accuracy. But I stuck to the plan. Yay. I still believe we’ll see those levels again before the end of 2009, but not before a significant correction.
I wish I had more time — you know this Knotty Warhol thing is a great frame of reference for shorter term trades. If I could sit in front of my screens all day, I’m sure I could swing and day trade with a higher success rate as a result. I should look into the potential synergies…perhaps a good study project when I get some downtime.
Did you pull much out of that GBPAUD trade? I almost got in, but something told me to wait.
Gav said
I guess you are talking about my EURJPY long. That was a crap. And I exited sometime ago. Well, I don’t hold a position like you do. :)
Mike K. said
You have enough patience to trade fairly large and long moves. It probably wouldn’t be easy to switch to extremely short term trading. Very few people have the right psychological make up to be good at all time frames. Hope it is you. If you were asking about my GBP-AUD trade it made a little over 300 pips. Must run now.
The Lonely Trader said
Mike, believe it or not, I started out trading on the 15min charts. And it is on those charts where I feel at home.
The Lonely Trader said
Nice one on GBPAUD by the way. Not an easy pair to trade.
Mike K. said
Thank you. I thought by short term you ment very short, like 1M, scalping. On a principle that when you have an edge you make as many trades as possible, so the you can compound this edge over and over, even if the gains are small. Myself I find too intense. Even a little addictive. Like chasing some high or something.
The Lonely Trader said
I know exactly how that feels. I traded on the 1min charts for several months — taking a few pips at a time. I even have my old trading journal from that time. It felt like playing online poker. Maybe I should post them? ;)
Mike K. said
Yeah, like playing poker. And there is no end to it. If you trade more than one pair and set up, there is something always forming. Before you know it, 20 hours went by and you are wasted as if working in a coal mine. It is fun for a while, but really tiring in the long run.