This Week’s Swing Trading Round-Up; 22nd September 2013

This Week’s Swing Trading Round-Up; 22nd September 2013

It’s been one Week since restarting trading and the very first trade I opened got off to a brilliant start. The DAX long was taken on Friday 13th of all dates but got off to a great start by rallying 300 points within 4 trading days. It was very tempting to just bank that profit and I do fear my own judgement in being able to hold that trade as originally intended. As a reminder the plan was/is to hold it based on the Monthly and Weekly charts as opposed to smaller time frames and I’ve never based a trade on such time scales before.

Even the 4 hourly 200 MA is 100 points lower than my entry level so sticking to my plans really will make this a long term trade and I have to question whether its worth it based on the financing I’ll incur as well as the fact I’ll potentially be holding the trade through some deep corrections on the smaller time frames. The more I think about it the more I wonder whether it’s sensible to trade this way. I don’t think it is, taking an Option is probably the most cost efficient way of doing this.

In the meantime then I’ll just run the trade as is and consider using a trailing stop if it continues to rally. If price sells off from here I’ll re-evaluate the stop loss position as time goes on.

Aside from the DAX I’m still watching GBP:CAD with interest and keeping an eye on NZD pairs, many of which look ripe for a pull back following recent over-exuberance.

I hope your trading is working for you particularly as we’ve seen some more volume come into the markets over the last few days which in my view makes the T.A approach a little more reliable.

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