Out of trades

Out of trades with a $1000 loss...account is doing great, however...remember, it is impossible for every trade to work out.

Trade laid out graphically

Here are the original trade parameters. The bottom red line is the STOP. The top red line is T1. The two green lines are the first and second longs. The long wick is one of the things that inspired the second position. (clicking on the chart gives you a clearer view):

Building a position

I added another lot to my EURO/YEN position (2 total.) My accounts are a combination of different trading techniques.

The first long I did was a Bob Iaccino recommendation. I don't know if their traders ever add to their positions on a rotation (they make every trade that is recommended.)

The second long I did is a Keystone Trading technique where they teach you to add to a position if you have a lot of evidence that the direction you chose is getting stronger. (It's like doubling down when you get an eleven, for lack of a better analogy.)

Shoo, shoo!

In case you've been watching the EUR/USD, the 4 Hour chart is just shooing the Melody ADX away, like it's a flea...totally ignoring being overbought.

Trade details

So, I ended up getting just 1 Lot of the EUR/YEN @ 133.75.

T1= 134.95 (which is big for a T1, but I did have a fortuitous entry level at the lowest possible point.) I keep harkening back to that Iaccino lesson, where he stressed that a larger position is appropriate when the stop loss is very close to the entry (considering the profit potential.)

T2= 135.87
STOP= 132.74

Considering how I probably got in much lower then Iaccino's European clients, that is something I should have done i.e. 2 Lots.

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Did anybody notice the long wick on the daily Gold chart two days ago? (All I'm saying is to watch it if you're long, because it doesn't much look like $1000 is going to become support anytime soon. BUT, I only sold half my calls, because anything can happen, and I am still short.)

Interesting uses of the Melody ADX

Currently, my trading lessons are centered around a few things, including preserving profits, always using stops etc. but one of the things we are learning about is the Bob Iaccino propietary indicator...the Melody ADX.

The EUR/USD looks very appetizing here, but the Melody on the 4 Hour chart looks very overbought (60+). Since the 4 Hour chart is the chart for all of BI's recommended trade breakouts or breakdowns, we would need a little unwinding. Iaccino also said there may be a trade here if we do get the unwinding.

The Daily chart, on the other hand, has plenty of upside showing. The Melody is very low (clicking on the charts give you a clearer view):

Entered a "Risk Trade"

As per Bob Iaccino and Trader Outlook, I entered a trade going long 1 Lot the EUR/YEN after a retracement (because the trade hit while I was sleeping.) Ironically, had I been awake when the close of the 4 hour bar occurred, I would be down...now I am up, because I bought on consolidation. Details coming...

The term risk trade applies to any trade that is not long the Dollar or Yen, which are considered safe havens. As Bob likes to call it, "you're building a position."

Sold Half the Gold Calls

Today I sold half my contracts at $33.90 minus commissions.

I still don't believe that Gold is this strong. Sold 5 contracts (@33.90= $16,950) and still own 5 because my short is down $7,000.

Unbelievable!

Does anybody know who Guy Cohen is? Google his name, and then come back to see what I just bought. I am amazed at myself...because it's not like me to do such an insane thing!!

(But it made total sense...)

Selling half my Gold Calls

In my "Now what do I do?" post the other day, I needed to decide what I should do with this profitable call position. There are a lot of conflicting indicators...most of it anti-Gold here...a weekly and daily negative divergence (and also in the CRB index and equities.)

We did close on a new high dating back to May, but again, the volume is not what it should be for a rise like this (thus the divergence in the MACD.) I even remember someone on CNBC mentioning in passing last week that the big movement was a result of computer trading.

But, the markets have been trading so un-fundamentally, for lack of a better word, that maintaining my short in Gold, and selling my entire call position, would be too risky. So, my decision will be to sell 5 of my 10 contracts and take a handsome profit (when the options market opens on Tuesday.) At the same time I will be able to maintain the protection for my short position by keeping the other half.

It will be interesting to see what the Ozzie and Canadian Dollar do before Chicago opens Tuesday. (The other thing I could do is turn the rest of my calls into a long straddle position, because I think that whatever Gold decides to do, the move will be big. The only problem is that it would not be a delta neutral trade as I will be short more then long.)

New statement (including the Bob Iaccino account,) later today.