Finally back & looking ahead

One chapter of my life is over and I have finally more time to focus on my trading. In terms of trading results I can consider the May 2011 as the worst month of my trading career. My lost focus needs to be regained and since all distractions are finally settled there is nothing what can stop me (only my own greed and fear). Here I am facing up a new challenges. Get back in the black again and improve several areas of my trading. Here is just a snapshot of what needs to be improved:

• decrease the frequency of trades
• better sizing of my trades depending on the type of trade (scalp/swing)
• implement max. give back rule after I hit certain target for the day
• decrease the size at the end of the trading session
• focus only on high probability trades as the sessions is approaching it’s end
• start using my new to-do trading checklists better on my iPad (saving forests 🙂
• add minute charts into my tick chart playbook
• improve money-management through better lot distribution
• read more, study hard, be disciplined, etc …

That would be in a nutshell. So what is coming up in the week ahead. Well in terms of my longer term strategy I have two pairs I might be interested in: GBPCHF and USDJPY. On GBPCHF I am currently biased LONG. I see a potential bottoming with pair hitting it’s down channel trendline. The sell-off was too hyped in my opinion and some correction will be needed sooner or later. Ideal situation would be a rectangle pattern or bullish reversal around the bottom with clear predetermined risk. If things work out I am expecting a +400pips move. USDJPY is the second pair I am interested in. It is a bit longer term but again it is currently around an interesting level and I am gonna watch really closely how the pair will behave around 79.50 – 80.50. At the moment the weekly chart suggest there is more pressure on the down side but let’s see what happens.

On my shorter term strategy I am looking ahead to see reactions in both EURUSD and GBPUSD. The decline was pretty steep and both of the pairs are currently at the levels of possible profit taking. 4340 – 4310 is a critical area for EURUSD. With GBPUSD hitting the bottom of the channel I am also expecting some resistance. In both pairs I am looking for 50 – 70pips retracement after the open. With the heavy trading right to the close on Friday we might see some gaps. I am going to take it easy since I need to digest the time I spent away from markets. So take it easy too tomorrow, with all holidays coming on Monday it might be another sleepy day.