Tuesday, 21 July 2009

FX and Time out

As I decided to step back from options this week- as August is a 5 week month and volatility is not in favour of the seller currently, I thought it'd be interesting to have another look at forex, and while cable (pound/dollar) is the old warhorse, also looking at pound/swiss. Both described a perfect retrace to my famous moving average and proceeded to plummet for a trade of 100 pips.
This is the classic situation you get with trading- you see the first big winner and think you are a genius. Winning teaches us nothing, and there's no good reason why my method should work anyway- but it does. I know it is hard to trade this method but the time slot for these trades is really 7-9.30 a.m. so it may kill me to get up a bit earlier but I am intrigued that a higher time frame has made a world of difference, and the system still seems to hold.
Multiple income streams are the ideal. I'll start my takeaway porridge service next.

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