Dear readers, let me wish you a good start of the new 2016. Here I publish my trading results for January. The second winter month was quite difficult and tense. While it was easy to foresee the EUR/USD movement, GBP/USD and USD/CAD seemed to have snapped and drew new lows almost every day. Crash on the Chinese market which led to fall in crude price and commodity pairs was thought to be the main reason for such behavior of the pairs. Big players took advantage of this negative situation; they continued to blow another bubble on USD/CAD.
As an example, look at the chart of the same bubble on gold which burst in 2011. Always learn the lesson: figure out in what direction the gold moved after 2011. The situation may occur again.
But it’s all just lyrics; how many times the pound or the loonie reached another 10-year maximum is less important for speculators than how much they’ve managed to gain from it. Keeping in mind that such movements are quite rare, I don’t take them into account, and go on with trading on the time frames which showed good performance in the longer term. This time, they also served well – combined profit on two accounts came at $1,038 for January 2016.
Account No 1.
In the first half of the month, only one account was involved into trading due to low liquidity during New Year and Christmas. Consequently, few setups have been formed. Trading was on majors and crude light oil. Mid-month, I happened to brake the money management rules on GBP/USD, as the stop level was shifted after profit from other instruments had been received. It was due to significant dis-correlation occurred between the euro and the pound, and due to overestimated expectations relating to the Wedge pattern usage. As a result, this deal brought a loss three times bigger than expected. I managed to offset it in the second half of the month and received a positive balance of $380.
See the detailed information on trades in the statement below.
Account No 2.
I traded only light crude on this account. I placed orders after the contracts’ expiration in compliance with the wave picture given in outlooks.
CL (Crude Light). H4, 21.01.2016 - downward movement completed within the wave 5 of (3).
CL (Crude Light). Н1-H4, 25.01.2016 – correction before continuation of upward movement.
Importantly, accurate entry orders helped to minimize drawdown to less than 0.5% with profit above $650.
To sum it up, let me advise you to be more confident in using your own trading methods and remember sticking to the money management rules.