On Wednesday we covered a very important topic for forex traders; Forex Risk Management. Most new forex traders have poor risk management procedures and only focus on generating profits in their portfolios. They ignore that risk management is as important to a successful trading strategy as risk management is. You need to protect your bottom line and make sure that trades which move against you will not wipe out your trading account. It is vital that all traders implement risk management procedures and execute them as part of their trading strategy.
On Friday we took a look at the Top 5 Attributes of Successful Forex Traders. There are plenty of forex trading strategies as well as approaches to forex trading and it all comes down the individual trader, but there are certain key attributes all of them possess and master. We invite you to take a look at those five so you can determine how many of them you can call your own. We suggest that if you do not have all of those five in your trading arsenal, that you should spend ample of time in order to learn, understand and master them as it will greatly improve your trading performance.
Overview of profits for the week which ended April 26th
USDCHF: 100 pips
GBPCHF: -2 pips
Total: 98 pips
Monday, April 22nd
AUDUSD Long Recommendation
We recommended a long position at 1.0250 with a take profit level of 1.0400 (AUDUSD Ripe for Bounce). This currency pair currently carries a floating trading profit of 28 pips.
Tuesday, April 23rd
USDCHF Short Recommendation
We recommended a short position at 0.9415 with a take profit level of 0.9315 (USDCHF Counter-Trend Correction). This currency pair currently carries a floating trading loss of 16 pips.
Wednesday, April 24th
EURCHF Short Recommendation
We recommended a short position at 1.2315 with a take profit level of 1.2215 (EURCHF Reversal Pattern). This currency pair currently carries a floating trading profit of 29 pips.
Thursday, April 25th
GBPCHF Short Recommendation
We recommended a short position at 1.4585 with a take profit level of 1.4285 (GBPCHF Rising Wedge). This was an addition to our short position we took on February 25th. We also reduced our overall exposure by exiting our three open GBPCHF long positions for a total loss of 2 pips. This trade carries a floating trading loss of 930 pips. This represents a decrease of 626 pips compared to last week.
Exit from previous trades
USDCHF Long Position
We closed our open USDCHF long position on April 23rd for a profit of 100 pips as our take profit target of 0.9400 was triggered.
We had a total of four trading recommendations this week, three new positions which carry a floating trading profit of 41 pips and one addition to a trade which currently carries a floating trading loss of 930 pips, down 626 pips compared to last week. We also closed one older position for a profit of 100 pips and reduced our exposure to the GBPCHF as we closed our three open long positions for a loss of 2 pips. This brings our total profits for the week to 98 pips and our total profits for April to 1,397 pips.
In addition to our three new positions from this week plus our add-on trade, we also carry four positions from previous weeks. We have one open USDCAD short positions which currently carries a floating trading loss of 74 pips. This represents a decrease of 100 pips compared to last week. We have revised our take profit level to 1.0050.
We also have three open GBPUSD positions, two long positions and one hedge, which currently carry a floating trading loss of 1,725 pips. This represents a decrease of 657 pips compared to last week. We will maintain our take profit level of 1.6000.
We also have four open EURGBP positions, three short positions and one long hedge, which currently carry a floating trading loss of 1,027 pips. This represents a decrease of 448 pips compared to last week. We will maintain our take profit level of 0.8275.
We have one open AUDNZD long position which currently carries a floating trading loss of 88 pips. This represents a decrease of 96 pips compared to last week. We will maintain our take profit level of 1.2380.
Our total floating trading loss for the week stood at 3,803 pips. This represents a decrease of 1,714 pips or 31.40% compared to last week. GBP related trading losses accounted for 3,682 pips or 96.82% of all trading losses, but are down 1,731 pips or 31.98% compared to last week.
We expect to earn 1,200 pips in May while we predict that our floating trading losses will range between 3,500 and 4,500 pips.
We hope that you enjoyed your weekend and that we will see you back on Monday.