Monday, July 28, 2008

Holding the Course Not for Wimps! --IFCN Wk 33 -Fri- Equity: $675.94.

It takes a great deal of character to take trades over and over again which end up losing.

A perfect example was this last week. After a series of 4 weeks with marginal profits or actual losses, we came into last week and immediately were slammed with 5 losses.  

I got a small net profit from a pair of uncancelled reverse trades that did little to stem the onslaught.

Remembering that this is a numbers game gets difficult if all you've been experiencing recently is losses.  

Colonel Sanders as an old man spent two years driving across the United States looking for restaurants to buy his chicken recipe. He was turned down 1,009 times before someone finally accepted his deal and history began to be written....

That doesn't mean that we want to or have to wait till we are old to "finally" succeed, but strings of losses aren't very encouraging either.

Persistence ultimately rules, but does it have to take so long? We'll see!

Here's last week's recap:

The data below is as of Friday's close, July 25, 2008:

Start of week equity: $709.06.

OneNightStand Exit(s) on 06/21/08 : 
Gbp/Jpy: long Friday @ 213.64, exited Monday morning @ 213.03 for 61 pip loss (-$ 4.56).

Completed FirstStrike trades this week:
Eur/Usd: Long @ 1.5923, stopped out at 1.5863 for a 60 pip loss.
Gbp/Jpy: Short @ 212.28, stopped out at 213.18 for a 90 pip loss.
Gbp/Usd: Long @ 1.9996, stopped out at 1.9936 for a 60 pip loss.
Usd/Chf: Short @ 1.0160, stopped out at 1.0220 for a 60 pip loss.
Usd/Jpy: Short @ 106.31, stopped out at 106.91 for a 60 pip loss.
Reverse Trades taken:
Usd/Chf: Long @ 1.0260, exited Friday @ 1.0370 for 110 pip profit.
Usd/Jpy: Long @ 107.31, stopped out at 106.71 for a 60 pip loss.

Total losses: 390 pips  
Total profits: 110 pips 
Net losses: 280 pips (-$28.56)

OneNightStand 07/25/08 entry(s)

End of week equity: $675.94.(includes unrealized P&L)
Total Loss for Week: $ 33.12 (4.6% weekly decrease)

The reverse trades as a group had a small positive addition, but were far from a resounding profit.

The forex markets are madly trying to make sense of all the conflicting news tossed at them every few days. Being reactive only creates potential for greater losses.

Have a good evening.

Joel Rensink

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