Monday, August 08, 2005

Today's Forex Play

I made over $100 on a USD/CAD trade. When I started, prices were at 1.2139/44. They kept dropping into the 30s and then the 20s. I kept buying with each new low. I was sweating it a while as my unrealized losses went up over $200. The price just kept dropping lower and lower. I thought, "Oh, crap! I should have shorted." But, according to the charts, things were on an upward trend. Eventually, the price came back up and the gains from the lows overcame the losses from my high purchases. I cashed out when I got over $100. I could have waited until all my buys were profitable, but I'd rather lock in a sure win. This is dollar cost averaging on speed.

My position now is $2188.00
Realized gains are $323.74

I have a position open right now with EUR/USD. It's not going anywhere. Trading has been flat since I started. My unrealized losses on the EUR/USD have been between $20 and $40 with $100,000 riding on the price swing. Once things get moving, the gain or loss will be huge, but nobody is trading much.
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