Trading Results: Week Of 24-28

by Jhon Lennon 31 views

Hey guys! Let's dive into the trading results from the week of the 24th to the 28th. This week has been quite the rollercoaster, and I'm excited to break down the key trades, analyze what worked, what didn't, and share some insights that hopefully you can apply to your own trading strategies. So, buckle up, grab your favorite beverage, and let's get started!

Overview of the Week

The week started with a bit of uncertainty in the market. Several economic reports were released early in the week, causing some volatility. I primarily focused on forex and a few select stocks, aiming to capitalize on short-term price movements. My strategy revolved around technical analysis, paying close attention to support and resistance levels, candlestick patterns, and key indicators like the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI).

Forex Trading

In the forex market, I concentrated on major currency pairs such as EUR/USD, GBP/USD, and USD/JPY. The EUR/USD pair presented several opportunities due to the ongoing economic news from Europe. I managed to catch a couple of decent swings, primarily using a combination of the 4-hour and daily charts to identify potential entry and exit points. One trade, in particular, stands out:

  • EUR/USD Long Position: I entered a long position at 1.0700 after noticing a bullish engulfing pattern forming near a key support level. My initial target was 1.0750, but I decided to hold a bit longer as the price action looked promising. Eventually, I closed the position at 1.0780, securing a profit of 80 pips. However, I made a mistake by not setting a tighter stop-loss initially, which could have protected more profit had the market reversed unexpectedly.

GBP/USD was a bit choppier. Brexit-related headlines continued to create unpredictable swings. I managed one successful short trade, but also encountered a losing trade where I was stopped out due to a sudden spike. The key lesson here was the importance of staying disciplined and avoiding over-leveraging, especially when the market is highly volatile.

Stock Trading

On the stock side, I kept my focus on a few companies that had earnings announcements during the week. Earnings season can be a great time for short-term trades, but it’s also risky. The key is to do your homework and understand the market’s expectations for the company.

  • Company A (Tech Sector): I traded Company A after their earnings release. The company beat expectations, but the stock initially dipped on profit-taking. I saw this as an opportunity to buy the dip, anticipating a rebound. I entered a position at $150 and sold at $153, making a quick profit. The important thing was to react fast and have a clear plan.
  • Company B (Retail Sector): This trade didn't go as planned. Company B missed earnings estimates, and the stock plummeted. I had anticipated a more muted reaction and was caught off guard. I quickly cut my losses, but it still resulted in a significant dent in my weekly profits. The takeaway? Always be prepared for the unexpected and have a well-defined risk management strategy.

Detailed Trade Analysis

Let's break down a couple of trades in more detail to highlight the thought process and the execution.

Successful EUR/USD Long Trade

  • Entry: 1.0700
  • Exit: 1.0780
  • Reasoning:
    • Bullish engulfing pattern on the 4-hour chart near a key support level.
    • MACD showing bullish divergence.
    • Overall positive sentiment towards the Euro due to encouraging economic data.
  • What I Did Right:
    • Identified a strong technical setup.
    • Patiently waited for confirmation before entering the trade.
    • Held the position until the target was reached.
  • What I Could Have Done Better:
    • Set a tighter stop-loss to protect profits.
    • Considered taking partial profits along the way to reduce risk.

Unsuccessful Company B Short Trade

  • Entry: $80
  • Exit: $75 (after being stopped out)
  • Reasoning:
    • Anticipated a negative reaction to earnings miss.
    • Technical indicators showing bearish momentum.
  • What I Did Wrong:
    • Underestimated the potential for a sharp decline.
    • Didn't set a wide enough stop-loss to account for volatility.
    • Failed to react quickly enough when the stock started to plunge.

Lessons Learned and Key Takeaways

This week in trading provided several valuable lessons that I'm eager to share. Here are the key takeaways:

  1. Risk Management is Paramount: The importance of risk management cannot be overstated. Whether it’s setting appropriate stop-losses or avoiding over-leveraging, protecting your capital should always be your top priority. The Company B trade was a harsh reminder of this.
  2. Stay Disciplined: Stick to your trading plan and avoid making impulsive decisions. It’s easy to get caught up in the excitement of the market, but discipline is essential for long-term success.
  3. Adapt to Market Conditions: The market is constantly changing, and your strategy needs to adapt as well. Be flexible and willing to adjust your approach based on the current environment. Volatility can create opportunities, but it also increases risk.
  4. Review and Analyze Your Trades: Take the time to review your trades, both the winners and the losers. Identify what you did well and where you can improve. This is how you learn and grow as a trader.
  5. Emotional Control: Trading can be emotionally challenging. Fear and greed can cloud your judgment and lead to poor decisions. Develop strategies to manage your emotions and stay objective.

Tools and Resources Used

Throughout the week, I utilized several tools and resources to aid my trading decisions. These include:

  • Trading Platform: MetaTrader 5 (MT5) for charting and trade execution.
  • Economic Calendar: Forex Factory for tracking important economic events.
  • News Sources: Reuters and Bloomberg for staying updated on market news.
  • Technical Analysis Tools: MACD, RSI, Moving Averages, Fibonacci Retracements.

Looking Ahead

As we move into the next week, I plan to focus on refining my risk management strategy and improving my ability to adapt to changing market conditions. I’ll also be paying close attention to upcoming economic reports and earnings announcements to identify potential trading opportunities.

I am considering exploring new trading strategies, such as algorithmic trading, to automate some of my processes and reduce emotional involvement. However, I understand that this will require a significant investment of time and effort to learn and implement effectively.

Conclusion

Overall, the week of the 24th to the 28th was a mixed bag. There were some successful trades, but also a few setbacks. The key is to learn from these experiences and continue to improve. Trading is a journey, and there will always be ups and downs. The important thing is to stay focused, disciplined, and committed to your goals.

I hope this breakdown was helpful! Let me know in the comments if you have any questions or if there are any specific topics you’d like me to cover in future updates. Happy trading, and I’ll catch you next week!