TRADE UPDATES FRIDAY 5-11

It appears that I made a mistake in my numbers when I calculated the closing price of Usd/Chf trade. The closing price should have been 2181 which means the trade was actually positive by 7 pips instead of negative 2 pips. I placed the closing price at 2190 instead of 2181. Sorry, That means out of the 5 trades there were 0 losers at the close of Friday's trading.

The updated numbers with more detailed information is at the link provided. I mean, it would probably be a little more helpful if I posted whether it was a long or short entry. Please forgive me for rushing, Once again a case of doing too much to fast.

But it breaks down like this; 5 trades all profitable, no losses. 2 trades would still be open if not for the time stops and they are more profitable at this writing than they were when the time stops were executed.

The trades achieved a roughly 2 to 1 reward to risk when you consider how far price went against you before turning profitable. These were conservative targets as my intent is to get you in the position of playing with house money (profits) then I will get more aggressive when you won't be risking your starting capital. Your winnings can be used for your stops. Then you can take a little more risk.

I have taken this approach because many of you have told me that you are trading mini accounts. That means your objective should be first build up your accout to say, double your initial capital.

118 pips is not a lot for a mini account trader but trading full contracts that's $1,180 in one week. That's why most mini accounts go broke over and over again, because traders feel they have to hit home runs to make it worth their while.

Even though we want trades with a 3 to 1 risk reward you can compound the same way with a 2 to 1. For example; with these 5 trades, if you had added an additional contract after each win you would have earned.

In my next post I'm going to show you how powerful small profits can be.
So, I'm going to give you an example of how money management is the real key to success. It goes hand in hand with trade management. So, look out for that post.

I'm going to use the example of the 5 trades I called for you and how I used compounding to keep my risk next to nothing. I call this my CYCLE APPROACH TO MONEY MANAGEMENT.

In case you are wondering, the original targets for the GBP and the CHF trades are still the same. Just because I don't feel comfortable holding intraday positions over the weekend doesn't mean you have to.

I've just had some bad experiences with gaps against my position with weekend breaking news. You know, like wars, assignation's, death of key political figures, Tsunami, you get my drift.

So, if I think a target is still far enough away to make the trade worthwhile, I will look to reenter the position on the continuation rules and that is the case today Sunday May 13, 2007 with the GBP and the CHF trades.

I will not consider an entry until after the close of the 1hr bar for Monday, which is 9:00 pm est. At that time I will be keeping an eye out for intraday pivots off of Friday's closing prices.

If I reenter I will update you.


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JERRY
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