TheSmalltrader'sDiary(UK)

[sidg219]

As a small trader using several platforms and accounts to minimize risk, I take an intermarket view of chooisng markets and technical analysis for entry and exits. The idea is to minimize whipsaws, and reduce the risk of losing accounts. Based on 5 years' exerience in the markets, hopefully this diary will help in educating myself and others.

For today, no one knows whether the USD is facing a big comeback or atleast a major retracement. I personally think so, as the tech stocks have done so well in Q1 , and a lot of money will flow in the USA bringing down the EURUSD. Stocks and property is historically cheap.

The EURCHF rates will start going down fast and has started reversing today, as there will be a net shot away from relentless euro buying atleast in the short run.

Short EURCHF Below 1.6200 ( Personal account : I am -140 )
Long mining UK Vedanta 23.45 - Mining demand is up again. (aCCOUNT : + 1%)

 

[sidg219]

Reversing my position

Added more money to my spread-beting account to cover my position, as at the last minute on Friday the 25th 2008 I changed my long position on Vedanta to a short. Vedanta is at a low risk for a sell technically speaking, as there was a lot of last minute professional selling and futures dipped in the last hour for no apparent reason.

Part of the money management skills for small traders is to quickly change track if the technical picture changes, and minimize losses as the first priority if the techical basis is proved incorrect. For Vedanta yesterday when the stock failed to penetrate is long term resistance of 27.75-80 and rereated, another breakout opportunity was wasted. The price was way above the Ichimoku clouds and the stochastics also confirms an imminent downtrend. MACD shows a downward momentum (alhough not confirmed) and volume was at its lowest on a dip. Statistically we are poised for a fall lets see.

Today I will scan next week's forex and stock action on Metastock.