It has been a while since I last wrote a blog post. Time moves fast in the financial markets, and so much has changed since my last update. As I navigate through these dynamic market conditions, I wanted to take a moment to reflect on my recent trading journey and share some insights with my readers.
Performance Overview
My trading account has seen a solid performance so far. Since opening the account on January 21st, 2025, my overall returns stand at 37.45%. The month of February brought in a gain of 10.22%, and March, so far, has contributed 7.71% to my portfolio. While these numbers look promising, the road has not been easy. Market volatility continues to test even the most seasoned traders.
Navigating Market Volatility
The past few weeks have been quite turbulent. Finding the right opportunities has been challenging, but I have managed to stay on track by strategically positioning myself in trades that align with macroeconomic trends. One of my key trades has been staying long on AUDCHF whenever the opportunity presents itself. This pair has provided steady gains despite the market fluctuations.
The Changing Euro Landscape
A significant development occurred today—Germany’s parliament voted on a massive defense spending bill. This changes the outlook for the Euro currency. Previously, EUR had been a viable short trade, but with this major policy shift, the dynamics have altered. Increased defense spending typically strengthens a country’s economy in the long run, leading to positive sentiment around its currency. Hence, EUR is no longer a short trade for me.
Missed Opportunities and Future Plans
Reacting quickly to market events is crucial, and I must admit I was slow to respond to Germany’s announcement. The opportunity to go long on EURCHF slipped through my fingers, which, for me, is a missed trade and therefore a loss. However, I remain patient and will wait for a dip in EURCHF to enter a buy position. I anticipate multiple opportunities ahead and will be ready to act.
Carry Trades and Safe-Haven Currencies
When it comes to funding trades, CHF remains my go-to carry trade currency. There haven’t been any significant changes on that front. However, the Bank of Japan (BOJ) has been hiking rates, and further hikes are expected in 2025. This makes shorting JPY a no-go for me at this stage. I prefer to stay away from betting against a strengthening currency, and the risk of further interest rate increases makes short JPY trades unappealing.
Consistency in Trading
One of the biggest highlights of my journey so far is that I have won all my trades since opening my account. While this is a great achievement, I remain aware that past performance does not guarantee future success. Market conditions evolve, and staying adaptable is key to maintaining profitability.
Final Thoughts
Trading in volatile markets requires patience, discipline, and strategic thinking. While I regret missing out on the EURCHF trade today, I am confident that new opportunities will arise. As always, I will continue to monitor the markets, refine my strategies, and remain focused on capitalizing on profitable trades.
To my fellow traders, remember that the market will always test your resolve, but those who stay disciplined and adaptable will find success. Stay sharp, stay patient, and keep learning!
Until next time, happy trading!
You can access my live journal URL here: https://www.myfxbook.com/members/Abhi/markets-global-trends/11318562
Disclaimer:
Trading in stocks, currencies, CFDs (Contracts for Difference), Forex, spread betting, futures, cryptocurrencies, and related financial instruments (“Trading”) involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results, and you should be aware that trading can result in substantial losses. It is essential to carefully evaluate your financial circumstances and, if necessary, consult a qualified financial advisor to determine whether trading aligns with your financial goals and risk tolerance.
Be aware that certain trading strategies, such as contingent orders (e.g., “stop-loss” or “stop-limit” orders), do not guarantee limited losses. Market conditions may render these strategies ineffective, potentially leading to losses that exceed intended limits. We also emphasize the risks and opportunities associated with leverage in trading. While leverage can amplify gains, it can equally magnify losses, resulting in significant financial impact.
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