Forex trading Homeruns! --IFCN Wk 39 -Fri- Equity: $1104.38

Another great week!

Straight-line forex moves the past weeks helped the Challenge account make a 161% annualized return since I began trading it in December of 2007!

OneNightStand and FirstStrike did great this week. Not bad for a couple of simple but robust trading methods. Of course, some may think that luck plays a large part in abnormal returns, but I have found that it usually is more a situation of inevitable market opportunities meeting a prepared trader.

When the forex markets start making large moves continuously and seemingly unpredictably, the majority of participants are unprepared for the increased volatility. Those traders who have methods which can reap profits from that kind of volatility only need to reliably execute to receive their share.

I must admit in my own case, trading for 2 decades-- it's not been my cleverness that has brought me the greatest profits. It has been my willingness to execute thousands of trades that seemed lackluster in potential that turned into valuable positions. The trades became special properties from which I was able to receive additional value by holding just a little longer than others for greater than average profits.

The extra value I received could not have happened had I not entered in the first place. That said, I missed one trade this week, right at the end. It's mentioned in the recap.

Here's the week's recap:

The data below is as of Friday's close, Sep. 05, 2008:

Start of week equity: $978.83

OneNightStand Exit(s) on 09/01/08 :
*Gbp/Usd: Short @ 1.8239 – Exited at 1.8031 for 208 pips profit.
*Gbp/Jpy: Short @ 199.60 – Exited at 1.9568 for 392 pips profit.
Total Profits: $ 52.19. (Increase of $40.39 from Friday's close)

Completed FirstStrike trades this week:

• Eur/Usd: Short @ 1.4584, – Exited at 1.4235 for 349 pips profit.
• Gbp/Jpy: Short @ 194.93, – Exited at 189.04 for 589 pips profit.
• Gbp/Usd: Long @ 1.8080, stopped out at 1.8020 for a 60 pip loss.
• Usd/Chf: Short @ 1.0979, stopped out at 1.1039 for a 60 pip loss.
• Usd/Jpy: Short @ 108.03, stopped out at 108.63 for a 60 pip loss.

Total losses: 180 pips
Total profits: 938 pips
Net profit: 758 pips ($94.94 net gain.)

OneNightStand 09/05/08 entry(s):
*Eur/Usd: Short @ 1.4211, exited at 1.4306 for 95 pip loss.
Total ONS losses: $ - 9.78

End of week equity: $1,104.38 (includes unrealized P&L, if any)
Total Gain for Week: $125.55 (12.8% weekly increase)

If I took the OneNightStand trades perfectly this week, I would have bought the Usd/Chf trade @ 1.1182. It happened in the last 15 minutes of the day and my order had already expired an hour before. I didn't notice the price going higher or I would've had to execute it. I might be missing out on a profitable trade, but errors do happen to all of us.

We cannot afford to make many.

Joel Rensink
www.infiniteyield.com

PS: To receive the FREE! trading rules for the Infiniteyield Forex Challenge ($499 value) and the semi-monthly newsletter about this challenge, send an email to: newsletter@infiniteyield.com and tell me to which address you would like it sent. Please do not use AOL, Hotmail or Yahoo addresses. They've been known to filter out more good mail than actual spam. Try a Gmail address. It's free, simple and perfect for traders!