Tuesday, March 24, 2009

Thanks to Weak Dollar- New Equity Highs! -IFCN WK 68 - Mon- Equity: $3,032.14

Despite some loss trades last week this Monday's exiting profits from the Eur/Usd, Usd/Chf, and Usd/Jpy offset them handily since the position sizes exited were generous due to low volatility conditions prior to entry.

It is nice when trades work out well.

It is also astounding to me, even after trading these types of methods for decades- how quickly one can go from a burgeoning drawdown to new equity highs so quickly. On Tuesday of last week we had a current equity of $2,338 and in less than a week we were up 29% from there.

Then again, it is rare that we get Fed actions as pronounced as we experienced Wednesday of last week.

I'm always grateful when things work out, but I never feel lucky. It is too easy to lose in this business.

Make a trading mistake at the wrong time, be slow about putting in your orders, get sloppy about position sizing..., hundreds of little things done poorly could drastically affect returns.

For example, if I was unduly worried about the drawdown the account was in a week ago and didn't place full size positions on the winning Eur/Usd, Usd/Chf, and Usd/Jpy trades, the results by Monday's open would not have been as substantial. Same goes with the XAG addition at $12.00. That helped tremendously in the IFCN total equity.

Some would say that we were lucky. Well, maybe it would be for others, but for those who trade like us-- it is just taking care of business, and therefore, business is good sometimes.

Week of March 16, 2009---FirststrikePlus trade executions:
*gbp/jpy Short @ 136.71, stopped at 139.09 for 238 pip loss.
*gbp/usd Short @ 1.3993, stopped at 1.4132. for 139 pip loss.
*positions held before March 16th open.
  • gbp/usd: Long @ 1.4171, stopped at 1.3980 for 191 pip loss.
  • gbp/jpy: Short @ 135.48, stopped at 138.52 for 304 pip loss.
  • eur/usd: Long @ 1.3020, exited at 1.3661 for 641 pip profit.
  • usd/chf: Short @ 1.1713, exited at 1.1231 for 482 pip profit.
  • usd/jpy: Short @ 97.16, exited at 96.14 for 102 pip profit.
OneNightStand trades for Friday, March 20, 2009

Trading account equity: $1,932.14
Gain from previous week: $ 181.70

Silver position equity: $1,100.00
(Current XAG price: $13.70 – 400 unit position average: $10.95)
TOTAL Equity: $3,032.14

We probably won't have as fantastic of a week for a while, but I always enjoy a sharp lift like this one. The rest of you who executed the trades are no doubt happy you did.

I have a quick email sent the other day:

Hi Joel,

Thank you for your efforts to drag us into success. :-)
I will go for it!

One question.
Why do you prefer owning physical gold instead of
riding the trend with Oanda's spot gold or with
Are you afraid of there may be times when we
cannot have access to our funds in the banks?
If the above is true then a safe in a bank is not
an option either to store physical gold.
So take the gold home with you?

Thanks for your help. -J-

My answer is below:

Gold is ok.

Silver is better. Greater upside potential.

You are basically correct about storing your precious metals in banks.
There are too many historical precedents about metal being absconded with,
for various reasons, non of which benefit the precious metal holder.

Keep it safe somewhere else. Your creativity will likely find a great
place to protect your precious metal.


Thanks for the input. Have a good week.

Joel Rensink

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!

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