***Fastmarket Is Trading For Real, Have A Look***

HI guys and gals,

This is from the news section of FM, a trading description from Tonie, of the month of September 05, very impressive. To join FM, check my profile.

Enjoy

Necromancer :o))
************************************************** *******
September Harvest.

In this slightly delayed report I'm going to tell you about our trading in September, about our positions and results.

First of all, I'd like to explain my trading system in few words. It was developed in terms of several limitations. I devote to trading three or four hours a day (usually it is 6-10 GMT), sometimes I look at my positions before news breaking at 12-30.

But I like to put limit orders. Then, I try to put take-profit at least two times as big as stop-loss. It is a very severe limitation, because, as you know, 30-pips stop-loss is nothing for pound or chief, and 60-pips moving is quite a significant rally or fall for one session.

That is why my transactions are not numerous. I trade EUR/USD most often, sometimes USD/CHF and USD/GBP, yen more seldom. I do not trade crosses.

Then. My instruments are rather few and simple. I should admit that they are almost purely technical. I consider fundamentals only when I am going to trade on news breaking (that happens rarely).

So I use historical and "zero" levels, various trends and price channels, 100-days MA, dynamics in crosses, then fractals and Fibs to measure correction. I also mind MACD divergence or when the price is out of Bollinger. I am not a keen mathematician, and I don't like to deal with things I don't understand completely. That's that.

In September, I went into 23 transactions. Overall yield in September amounted to +52%

Average stop-loss was 34 pipses for EUR/USD, 53 pipses for USD/CHF, 45 pipses for GBP/USD and 36 pipses for USD/JPY.

Average take profit was 65 pipses for EUR/USD, 114 pipses for USD/CHF, 89 pipses for GBP/USD and 68 pipses for USD/JPY.


Now I am going to describe two of my September transactions, the most stupid and the smartest one.

I made the most stupid transaction of the month in the morning Sep 23 when I sold pound from 1.7873 to 1.7805 and I put stop at 1.7908.
Cable likes tails, and I knew that; but the reason that I want my stop to be "not so big" was stronger in my stupid mind. So I got nothing but stop-loss that very morning, and in the evening the price came to my target.
If I had made my stop ten pips more only. Disgrace and shame. :)

My most smart transaction was certainly when I bought chief at 1.2702 on Sep 22 and took profit with great pleasure at 1.2793 next day. Maybe it is not too much for chief, especially considering that my stop was hidden under 1.2652 fractal, but if you look at the diapason of these two days, you will excuse my disgusting boasting :-).

You can see that I made my most stupid transaction when my smartest one had been a success already.
That is, what the feeling of euphoria can do with your brains. :-/

As a matter of fact, the problem with tails is one you face every time you deal with pound.
You can easily compare cable-tails and euro-tails and see that cable-tails are much longer.
Euro often turns far not reaching the important level and not touching take-profits, while pound sticks the level and gathers stops.

So problems are different with them. With euro, it is more often "too small take-profit", with pound, it is "too big stop-loss".

As far as I am concerned, I generally prefer euro positions, the more so as euro and pound correlate most of time.
But in some cases pound (surprisingly) gives better opportunities for 25-30-pipses stop-loss.
To find these opportunities, I look at EUR/GBP cross. If I see it near the border of the price channel, I can expect the balance will restore owing more to pound than to euro.

Besides, I trade pound on news about real estate in Great Britain. But... you can't know for sure, how long the tail is going to be.

So - careful entering points signals will help us to cope with this problem.

Tonie D.

************************************************** *******