About Pick of the Day

Pick of the Day Author

At the end of each trading day, I will find what I believe is the best looking short term trade setup for the upcoming trading day. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. Trades will be posted by 1 am ET, Monday through Thursday evening.

Read First: Trade Rules!!

Latest Posts

August 2008

S M T W T F S
1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31

Pick of the Day: GBP/USD - Close Trade

Posted 11:55 08 August 2008 by Pipcrawler

Close Trade: 2008-08-08 11:55


I have managed to make back much of the earlier loss, and with the end of the Euro/US trading session at hand, I have decided to close my trade and chill out for the weekend.

Close at market (1.9195)

Total: +95 pips/ +0.63% gain


Stop and Reverse: 2008-08-07 23:26

It looks like 1.94 stood no chance as Cable blasted through support on continued US Dollar strength. Looks like I'm going to have to change my position as the momentum looks to carry the Greenback further.

Close open trade at market (1.9290).

Total: -120 pips/ -0.80% loss

I will short GBP/USD at market (1.9290), stop at 1.9440, pt1 at 1.9140, pt2 at 1.9015

So, I'm taking a small hit and going to ride the train further to possibly 1.9000. Good luck and stay tuned!

Trade Idea: 2008-08-07 17:47

PoD Chart

Got a technical play coming up on Cable as it approaches a significant support level. It's bounced a few times before, will it bounce again?

This is a basic chart play as the pair approaches 1.94, where it has found support and bounce higher. Stochastics are indicating oversold conditions on the daily.

Fundamentally, the Sterling has fallen on the UK's weakening housing market and as the US Dollar strengthens on falling commodity prices. Will commodities fall continue to strengthen the Greenback? Are the UK's economic worries just beginning to get priced into the pair? We'll just have to wait and see, but for now I am going to play the support level as such, but be ready to reverse if the pair breaks. Here it goes:

Long GBP/USD at 1.9410, stop at 1.9260, pt1 at 1.9550, pt2 at 1.9700

Remember to never risk more than 1% of your account on any single trade. Adjust position sizes accordingly.

No major news events in the line up for the last trading day of the week, but always be ready for surprise news. Stay tuned, good luck and good trading!

Comments Comments (12) | Email to a friend Email to a friend | Printer friendly version Printer friendly version

Comments (12)

hmmmm. blasted through support. hope this one works out for you.
enochbenjamin | Posted 22:20 07 August 2008
Yeah, looks like if it stays imma have to change my position... we'll see...
Pipcrawler | Posted 23:04 07 August 2008
looks like a revenge trade - never jump in after a parabolic move. a missed opportunity is better than lost money. a few months ago i thought you could do no wrong, now you look a little desperate to me... but hey you know what they say about opinions... I sincerely hope you get your mojo back!!!
enochbenjamin | Posted 00:11 08 August 2008
wow ... what a week. I doubt any one could have guessed the strong rally USD is having. I think a whole generation got wipped that last week. Hope all of you did some money management. Thanks crawler for trying. Its tough out there.
camelman | Posted 02:19 08 August 2008
could it be, that pretty much of your trades end up in a loss? Sorry to be harsh, but I'd really be interested seeing your track record...
RomanDG | Posted 04:30 08 August 2008
Hey guys thanks for the comments... RomanDG, this blog, as well as most of the others, was only meant to be a record of our thoughts on simple trade ideas to share with everyone. Not a signal service, which is why we do not keep a track record. But all of our trades are on the site so feel free to go through them all. Camelman, yes this has been a very choppy and erratic market and i've been getting my butt kicked hard on this blog, but that's why we practice proper money management. When you only risk 0.25% per trade, even after 100 straight losses you're still in the game. enochbenjamin - I did state in my original analysis that if it broke support I would change my position. In trading you can't let your ego affect your trading. I was wrong, I accept it, and now I'm going with the momentum lower. That's all. No revenge or desperation. Just trading. Good luck everyone!
Pipcrawler | Posted 06:07 08 August 2008
thanks pipcrawler for that great comment, I know this is no signal service and still appreciate that you share your ideas, I simply had the gut feel of numerous consecutive losses in the last months. cheers roman
RomanDG | Posted 09:53 08 August 2008
Thanks for sharing your ideas with us. I was in the same trade at a slightly different entry level and stop level from my own analysis. Keep the ideas coming. I have learned a lot from you. I also lost money on this trade. Losing money in the short term is a small price to pay to learn to analyze the market and come up with my own ideas. I have had many successful trades recently from my own analysis and a good deal of the analysis I learned from you and your blog. Again, I thank you, and look forward to learning more from you.
rgrace | Posted 15:01 08 August 2008
Hey pip! congrats on finishing the week on a positive note. I hope you don't take my comments as an attack - I was just stating my opinion at the moment. I have been monitoring your blog posts since last year and in my heart I know that you are a better trader than I. So once again - congrats and enjoy your weekend.
enochbenjamin | Posted 17:22 08 August 2008
Enochbajamin, thanks for your last post. i think it was gracious that you made that clarification because your ealier post read harsh. Rgrace put it aptly when he wrote such blogs as Pipcrawler's has helped him to analyze the market and come up with his own ideas. He is not alone. Pipcrawler - thanks, you have done much good than you can possibly ever know. I think your blog and others like yours are serving the purposes for which you intend them and they help provide practical learning experience for newbies. The market today was oh! could the cable have fallen harder if BOE had sprung a surprise rate cut? I guess that is some lesson again today for me. Wish everyone the best.
king | Posted 21:09 08 August 2008
Thanks for the comments everyone! Positive or negative, keep'em coming! I don't take anything personally...remember, I am here for you and it would be a joy to see our visitors become independent and successful. So, I'll continue to try my best to put simple ideas out there, and just remember that they are just "ideas" to give you my perspective on the markets. And I hope everyone understands, that as I focus on my own trading and this website, I may not get an idea, update, or adjustment out there as quickly as I hope for, which is even more reason to develop your own strategy. Thanks again for the comments, I appreciate everyone being a part of this community. Take care, good luck, and good trading!
Pipcrawler | Posted 11:05 09 August 2008
Perfecly agree with king. I can only say until 3 months ago I was a big loser; since I knew this site I have got back almost all my money. The effort these guys put in helping us newbies in understanding the dynamics of the market and the trading techniques is really awesome: this trade was for me an unvaluable lesson. Thank you very much pipsurfer and keep on doing the great work. Regards from Italy
clipmax | Posted 20:03 09 August 2008

Post a Comment

You are not signed in. You need to have a user name to post comments. Please sign in. If you don't have one yet, please register. It's free!

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

"The only good luck many great men ever had was being born with the ability and determination to overcome bad luck."
Channing Polluck
Clicky Web Analytics