Forex gains

And so after some rejuvenation from a good morning (though I'm still letargic from the previous few months' work and increasingly hectic tuition schedule) I managed to find the drive to trade in the forex market again.

And, as usual, I'm on the GBP/USD. So here's a screenshot of what happened.


So as you guys can see, I wasn't actually at the top of the channel when I shorted. Fundamentally that's not a very ideal price to short at. In fact, it was a emotional response to my losing short at the base of that steep uphill.

In fact, I was prepared to lose until I hit the upper limit and short the pair again with an increased traded amount. Of course, my belief in that the mid-to-long term direction that the pair is going south is not unfounded. I base that view on the daily graph, which showed that the pair has broken a 40days Moving Average line, which is a significant support line. Parabolics dots also indicate the pair is on a downtrend.

In any case, the pair headed south prematurely on news that the US economy is not doing that badly. There were mixed data on the housing market, which, I quote, "is an indication of a soft landing" and growth in the industrial outputs. In both cases, the Fed Board can be less worried about sluggish economic conditions due to their policy of maintaning the overnight rate of 5.25%, targetting high inflation rates.

Honestly, I can't figure what's the obsession with keeping the price low...And based on the demand-supply analysis, doesn't the fact that there is inflation mean either there is overly-high demand or low supply in the US. Both doesn't seem to be true with the emergence of China and India. Both of which have been the fav target of US critiscism for some time for their unfair trade practices and such which affects the US economy adversely.

Or it might be because we are still in a boom cycle since 2001. Well, I'll get to study all those data and trends and theories when I go to varsity anyway.

For now, I'm toying with the idea if it is possible to properly administer and discipline my trading to a single system. Recently I got involved in an investment which earns from international horse betting. And the basic idea is to increase their bets such that they can earn the same profit for all the lost matches before at one go whenever they lose the preceding bet. Call it risky, but that decision made me 55% returns this month. And I think it can well be applied to my forex trading. Takes loads of discipline. Now I regret now having some sort of martial arts background.