Monday, November 06, 2006
Closed My First Australian Dollar Futures Trade
Made $US64.30. Got in @ 0.7683 and out @ 0.7690. Each 0.0001 is worth $US10 on a single contract trade. Hopefully this won't follow the pattern of the NASDAQ 100 futures (NQ) where my first trade made money and the second trade was a losing trade. I entered this trade Friday after the steep rise in the US Dollar and fall in the Australian Dollar after the unemployment report came out on Friday morning. I did some technical analysis over the weekend, which showed that there was a significant chance that we were now in at least a short term downtrend. So I got out this evening with a small profit. I had a stop in anyway but if the chances seem stronger that the pullback will continue why take the risk of ending up losing money? But I don't feel certain enough about that to short the Aussie and right now have too little equity in my account to do both that and buy an NQ contract. I put some more money in my account but it is on hold till Wednesday :( I bought one NQ contract @ 1714 as the model is long. The model is predicting the Republicans will retain control of congress or if the Democrats gain control Bush will veto any moves they make to raise taxes on stocks. That has to be the implication of expecting the market to rise through the end of the coming week?
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Forex
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