-oo0(GoldTrader)
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Euro$
Today we had a predicted seasonal June breakout in Euro$’s. Anyone who got in, in April is now up over 100% on this trade today. Below is an example of the original position before pyramiding. These numbers were taken from broker’s statements.
You can see the trade was placed in April. The margin was $338.00. One side is down ($600.00) the other up $1,250.00 for an open trade equity of +$650.00 almost 200% gain on margin. This margin has already been put to work pyramiding.
The thing with trading seasonal spreads, is that we had no way of knowing that Euro$’s were going to explode today. But as seasonal traders we knew that if each year we put on a Euro$ spread similar to this, just after taxes are paid, that usually around the beginning of June we would be taken for a ride, as has happened again this year.
We do not, as suggested by other well meaning spread teachers, get out after a few days when prices do not move. We put on a position and give the seasonal forces time to develop. We are waiting for general conditions to materialize and eventually show up in prices. When we see the stirring of some sighs of life, as we did here when Parobolic flipped long in May. This was the time to start a daily vigil.
We are not decreasing our position unless our goal is to pay our brokers mortgage. We did not jump out every time support was tested. We did not bet against seasonal forces working one more year again.
What we did do, was average up on the breakout of the eight-week high, just as we averaged up at the end of May expecting a June break. We may get out early but not two months early, as this seasonal has about six moore weeks to go.
Today we had a predicted seasonal June breakout in Euro$’s. Anyone who got in, in April is now up over 100% on this trade today. Below is an example of the original position before pyramiding. These numbers were taken from broker’s statements.
You can see the trade was placed in April. The margin was $338.00. One side is down ($600.00) the other up $1,250.00 for an open trade equity of +$650.00 almost 200% gain on margin. This margin has already been put to work pyramiding.
The thing with trading seasonal spreads, is that we had no way of knowing that Euro$’s were going to explode today. But as seasonal traders we knew that if each year we put on a Euro$ spread similar to this, just after taxes are paid, that usually around the beginning of June we would be taken for a ride, as has happened again this year.
We do not, as suggested by other well meaning spread teachers, get out after a few days when prices do not move. We put on a position and give the seasonal forces time to develop. We are waiting for general conditions to materialize and eventually show up in prices. When we see the stirring of some sighs of life, as we did here when Parobolic flipped long in May. This was the time to start a daily vigil.
We are not decreasing our position unless our goal is to pay our brokers mortgage. We did not jump out every time support was tested. We did not bet against seasonal forces working one more year again.
What we did do, was average up on the breakout of the eight-week high, just as we averaged up at the end of May expecting a June break. We may get out early but not two months early, as this seasonal has about six moore weeks to go.
