Maxsmarts Trading Journal and Discussion

I'm going to start documenting a few of my trades here on forexfactory. I trade both spot and option forex and use mostly support, resistance, and fibbonacci levels for my trading. These are not all of my trades but a few. You are welcome to read and comment.

Trade #1 Eur/USD Put @1.30 to expire the 19th of February. Premium: $2,240.

I will be targeting the 1. 25 range.

Money Made from Trades posted so far: $39,540

Moving Journal to my own website http://forexoptionstrader.webs.com/
Where I will provide videos as answer questions and have a forum

Selling a call on the GBP/USD @ 1.45 to expire on the 12th of February. Premium payed to me $1,820. Will cover position on a break above the 1.45 region. I will most likely look for a close on the daily chart above 1.45 before looking to cover unless more moving news comes out.

Short Spot position on the GBP/USD 1.4462. Targeting 1.37 region looking for about 800 pips. Stop Loss at 1.46 or a close on the daily chart above 1.45. If such a movement occurs I will then reverse my spot order to cover the call i sold.

Stopped out of short spot position @ 1.4560. for 98 pip loss. Reverse order executed @ 1.4560 for long position to cover call @ 1.45.

GBP/USD option expired worthless for +182 pips. loss from spot trade was 98 pips. Overall trade profit: 80 pips= $800 for GBP/USD. Still in Put position for Eur/USD targeting 1.2550 region.

It should be interesting to observe when the effects of the stimulus begin to weaken the dollar. Even if the stimulus fails to help save the global economies, which I believe it will fail, 800 Billion USD is alot of dollars to flood the market which in turn creates a higher supply and weakens the price of the USD. Todays Price action on the Eur/USD was disappointing with it not even closing below 1.2850. There might possibly be a support bounce to around the 1.30 region;however, there is heavy resistance at 1.33 and I would not expect the rally to extend further given current fundamentals.

Overall for the Eur/USD I believe I should have acted in a more nimble fasion and opened a spot positon in the 1.30 resistance region and a short call to last a week at 1.33. I should have looked to take at the 1.27 support which is appearing to act as more of a formidable support area than I had previously anticipated. In effect the short option would net me at least 1,000 for the week, and my spot would have been 3,000. However I am still in my option position that I have been in for about a week now @ 1.30 looking to only make about 2,700 at the most if the 1.255 target is reached or a possible loss if it is not reached by next thursday. Of course I decided to use an option instead of a spot in the first place to avoid being whipped out should the euro correct higher although being aware the overall direction for the medium term was down. Decisions, Decisions...

I'm discontinuing the thread since it's pointless to share my success with others forex factory has made clear. They support Racial slurs and not a little humour.

Exiting Put Eur/USD @ 1.30 premium $4,720. Profit= about $2,500.

Watching and waiting fore breaks in the market. On the DJI. Looking for a close on the daily chart below 7500. And a break below 1.2550 on the eur/usd to target 1.23. I may enter short on a support bounce to the 1.27 level to target. 1.23

Given the evidence from the Daily and Weekly charts, 1.23 should be formidable support. I may look to take a covered call position at 1.23. With my short call @ 1.2550 to expire in two weeks. and my long spot at 1.23. This is looking ahead in the future. However, a break below 7500 on equities could cause a landslide and see the eur/usd quickly break through the 1.23 level and go into free fall mode. I think the covered call position would be appropriate as it would enable me to cautiously go long at the support level and receive about a $1,000 dollar premium which I could use as a 100 pip stop loss at 1.22. If there were a close on the daily chart below 1.23, most likely the level is broken and I would reverse my spot position going short and let my call expire worthless. However, if the market does indeed bounce from 1.23 support, and reach 1.30 in two weeks I will collect $3,500 from the position. Therefore, worst case scenario, I break even and then get to go short in the direction of the trend, or there is a bounce and I net $3,500.

Short Spot @ 1.2715. Stop loss @ 1.28 targeting 1.2565. Not a perfect risk to reward ratio. Trade at your own risk.

My reason for entering this trade was. Resistance visible on the Daily chart. I may just close out some of my positions at 1.2565 and keep the rest open for a run on 1.2330.

Exiting position here early at 1.2582 for a $1,350 profit. Thats why I can never scalp. I started looking at it. And i'm like hmm its over a $1,000, it just took a day. My best trading is pretty much hands off.

I'm looking for price action to reach the 1.30's region so that I can go short back down to 1.2550. Basically a repeat of our put to 1.2550. There is heavy Resistance on the Daily chart at the 1.30 region and the 1.33 region. I still have not decided whether to sell a call and go short sport (extremely aggressove or just buy a put option once again. Or just go short spot. As of writing this, price action is at 1.2920.

I fell asleep and my alarm never went off as prices never touched 1.3030. The trade would have worked out very nicely;however, as of writing this the price is back down to 1.2740. A very bearish looking candle has formed. I will look to enter short on a break of 1.27 or a return to 1.30.

Short at 1.2695 targeting 1.2565

The Yen seems to be breaking its correlation to equities and is at a critical resistance level on the Daily chart. I am going to take a covered call position to go cautiously bullish this pair. I'm Selling a call @ 95.50 yen and am getting paid $1,710 up front. Basically 171 pips. The option expires the 19th of march. My long spot positon is here at 95.07 yen.

Are these futures options traded on Globex or spot options? If spot, which broker?

My Broker is Ikon Global markets and they are custom european style options. Which means I can create my own expiration date, strike price, etc.

I was having computer problems and finally got it fixed today. I've been having to place trades using my phone.

Trades I'm looking for: A close on the daily chart below 1.27 for the Eur/Usd to enter short or a retrace to the 1.30's (I'm still short from 1.2695)

A close below 1.42 on the daily chart for the GBP/USD to enter short or a retrace up to the 1.4550 region.

I'm still in my covered call position with my spot position at 95.07 and my call @ 95.5. The disadvantage to this trade is my gains will be capped at 43 pips + 171 pips= 214 pips. So my gains are capped at $2,140. However, I would be up $3,550 already if I would have just done the spot position. But that's what happens when you trade with less risk, usually less profit. I think it was a good call for trading against the medium term trend though.

Today price action shows the huge importance of defining a breakout as a close on the daily chart breaching the s/r. Huge whipsaws on the eur/usd and gbp/usd last night. I considered selling an at the money put @ 1.4150 last night when prices reached down there but I was actually hoping for a break of that support level and a continuation to 1.37 so I passed up the opportunity. The Eur/USD still hasn't hit my profit target at 1.2565 and I got out at basically break even 1.2688. A gain of $40 after pip spread. I won't include this on the money made so far as it is disappointing.