Joined May 2009
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Status: Member
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I received a PM this morning with a question about how I trade long-term and short-term. This is a brief explanation. I have 4 "short-term" trading accounts that are used for day trading, where a trade may be open for 10 minutes to a full day (multiple accounts to mitigate the impact of FIFO). I have a single long-term account for trades that I hope to have open for weeks rather than hours. When I enter a trade in the long-term account, I usually open the same position in a short-term account. I will keep trades open in the long-term account for as long a the structure of the pair holds. But trades in the short-term accounts will be held to targets and then closed. So, if after a week, I were to have three trades (typically the maximum allowed given margin requirements) in the long-term account, I will also have traded three trades or more in my short-term accounts.
Joined May 2009
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Status: Member
|3,638 Posts|
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Quick summary: Long-term account has 2 open trades, with trade 1 up about 100 and trade 2 up about 40, stop on these trades is at 84.86. In short-term account, first trade I captured 85 pips, and another trade is now open and up about 40 pips, stop now at +10 pips. I have open trades in other pairs, so this is just a sample of how I trade, using the AJ as the example.
Joined May 2009
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Status: Member
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Short-term trade was closed before the big push down, so total in the short-term account this week, on the AJ, is up about 125 pips. As I look at the chart, there was another entry opportunity after that move, but I was away from my office at the time. Of course, both trades in my long-term account survived and together they are up approximately 180 pips total.
Joined May 2009
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Status: Member
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Not sure anyone is benefiting from these posts and it does take time out of my trading to post this material. So, I am wondering if it's worth the effort, and by worth, I mean is anyone getting anything out of this effort, because if not I can stop bothering people. Just wondering...
Joined May 2009
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Status: Member
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It's the end of the week, and I am working on closing the week. All short-term trades are closed and recorded. My trading notes and daily analysis worksheets are done and filed.
This leave my long-term account to close out. At the end of the week, I have to decide whether to keep trades open over the weekend, or close them out and reopen them on Sunday night. I had 3 trades open: 2 standard lots at 84.88, 2 standard lots at 85.39, and 2 standard lots at 85.62. That was an average price of 85.29. My stop on all 3 trades was at 85.11. I made the decision about 20 minutes ago to close all three out at 86.15. So, the plan for Sunday is to re-open 6 standard lots at a price close to 86.15, or lower if the opportunity presents itself. The stop will be re-calculated over the weekend.