My dear visitors! March has started and I provide you with my regular monthly trading report for February 2016.
I guess you can’t wait to find out whether I managed to reap profits and whether my forecasts in posts and comments came true. Expectations for the stronger greenback in the first half of the month were not met. When critical levels were hit, I locked some positions instead of fixing losses as I opened some deals in the medium term.
This method of money management is like a fixed risk per deal and suits those traders who spend a lot of time monitoring the market. To be honest, I don’t like this approach because it’s quite difficult from the psychological point of view to be in the market all the time. Still, what is important is result and it’s very nice: profits from three accounts together totaled $1,374!
Let’s consider each account and transactions on it in detail.
Account No 1
Here, I paid most attention to the EUR/USD, GBP/USD, JPY/USD, and USD/CAD pairs. According to the wave analysis, I expected the greenback’s strength, but the currency rose only in the second half of the month. Sales of the pound-dollar pair were projected in the last wave 5, but deals were closed at breakeven right before touching targeted levels. But persistence and patience helped me earn profits of $948.
Account No 2
On this account, I traded gold, natural gas, and light crude. Unfortunately, I failed to produce a positive result, but a slippage of $206wasn’t that big. I analyzed deals and realized that my key mistake was psychological as I didn’t expect such a sharp rise in gold after prolonged sideways trading. Besides, there was a completely illogical drop in gas quotes: while crude started returning its positions, gas kept making new lows.
Account No 3
Finally I closed my silver deal that I opened last year on the long-term account. I fixed profits ($632) in two steps. The first half of the order was closed at testing of the upper limit of the Wedge formed on the D1 time frame. The second half was closed after several unsuccessful attempts to hit a fresh high and the Head and Shoulders formation on the H4 time frame.
All in all, the month was quite profitable, though there's still something to strive for. For example, I find the mirror trading strategy rather promising. The strategy applied alongside wave and volume analyses gives rather clear entry points, thus increasing the profit-risk ratio.