The SAS Trader: Thursday Digest.

Hello and welcome to today’s adventures in the Forex Jungle.

I got to the desk early again this morning at 06:45, and on calling up the chart, I was pleased to see a definite signal indicating a short. After checking out the Daily Pivot, which was @ 1.6193, I entered straight into a trade. The stop loss was set for 1.6200 and I left the profit limit quite wide initially, so I could calculate potential areas of support. I figured that 1.6112 would be a potential support line, so I set the profit limit 3 pips above that @ 1.6115. That would give me a profit of 45 pips. I then left the trade on auto pilot as I had 

other work to catch up on.

I managed to look back in on the trade at 10:45 and discovered that it had stopped short of my profit limit by 7 pips, before turning around and taking off like a Saturn Rocket! I let it ride for a while in the hope it would turn, but I gave up around 11:20, managing to close the trade for a 7 pip loss.

I looked in again at 12:15, around the time that New York starts to open, and decided to go back in with a short trade, the price had started to fall again, and the indicators were backing that up. This time though, I was able to monitor it a lot closer and entered the trade @ 1.6150. I also put in my stop loss at 30 pips @ 1.6180 and left the profit limit open, I would be closing the trade manually.

The price dropped to the 1.6100 mark at around 13:30, at that point I moved my stop in to 1.6130, so what ever happened now, I would not finish the day in a loss. As the price reached 1.6080, I decided to set a profit limit @ 1.6050 and lowered the stop again to 1.6115. Just prior to 16:00 the trade was closed out at a 100 pip profit (97 net). Take away the 7 I lost earlier, and that is a nice day at the platform, with £90.00 added to the account.

However, I realised that I had made a mistake on the first trade this morning. The idea behind developing the system was to scalp 20/30 pips on each trade. Had I set my profit limit to 30 pips, the trade would have made its target. Going for the larger profits is fine if you are able to monitor the trade, making necessary adjustments as it plays out, or close the trade out if need be.

To have a trade work on auto pilot, the sights need to be set a little lower, and that is what I will be looking to do tomorrow. I need to remember that I should learn to walk before I run. However, the account is now up to £571.00. As ever, have a good day on the platform, stay happy.