2011-08-01st (Mon)

At the end of the previous trading session I had the following positions;
Long 300,000 USDJPY with ACB of 79.438
Long 300,000 USDCAD with ACB of 0.95915

In today's trading session we saw volatility as the US reached a debt and spending deal resolution.

We did some day-trading today as follows;

Sell-To-Open 1,300,000 USDJPY at 77.138 (2011-07-31, 18:18 pm EST)

Sell 100,000 USDJPY at 77.314 (2011-08-01, 05:43 am EST)

Sell 100,000 USDJPY at 77.219 (2011-08-01, 06:41 am EST)

Sell 100,000 USDJPY at 76.983 (2011-08-01, 10:20 am EST)

Sell 300,000 USDJPY at 76.598 (2011-08-01, 11:01 am EST)

Stop Sell-To-Close 300,000 USDCAD at 0.95664 (2011-08-01, 12:56 pm EST) for a loss.

Stop Buy-To-Close 1,600,000 USDJPY at 77.241 (2011-08-01, 13:22 pm EST) for a loss.

This may explain the spike in USDJPY that stopped me out of my position, perhaps due to the magnitude 5.9 earth quake that hit the Honshu coast this morning.

Article - "Japan readying intervention to reverse yen: report"
http://www.reuters.com/article/2011/08/01/businesspro-us-japan-yen-intervention-idUSTRE7704LC20110801

Our two Stop Loss Orders for USDCAD and USDJPY were not set to capture minimum-acceptable-gain, instead were set to preserve account equity.

This will be our greatest learning today, even in days of increased volatility we still have to preserve profits, otherwise we will end up with no profits.

Minimum-Acceptable-Gain Stop Orders are what I must do every time going forward.

After all the activity above we have net zero gains or losses to show for our efforts.

I currently have no positions and am 100% in Cash.

Our first line of credit was activated on 2011-06-16th (Thurs) and our second line of credit was activated on 2011-06-29th (Wed).

Total equity is 0% of June 1st and we are committed to trade ourselves back to our High Water Mark.

Stay Tuned,

Jeff
(2011-08-01, 13:44 pm EST)