Wednesday, June 24, 2009

06/24 Intra-day trades

Today was a lot better than Yesterday. I had only two trades, one worked, the other didn't. I managed my stops and limits properly and the trade that worked was something I was waitting to show up, so I already expected it to work and called into the trading room.

Most important take away from Today: Observe the markets, think ahead of time about what you're planning to do and wait for the market to show its hand. My first trade was a reaction to unexpected market movement, the second was a planned action in result to what I expected the market to do. The difference? Can you guess which one worked?

1) Bearish Engulfing EUR/USD: It happened after an unexpected sell-off on EUR/USD. I was expecting the market to make another run to the previous low, but the candle closed at the low, and there was not much left for me to make. I chased. On the bright side, I managed my stops and got out with 1/2 of my original stop by managing the position.

2) Bearish Engulfing EUR/USD: I waitted patiently for the market to make its way back up. All along the way I was waitting for a reversal to show up, observe the move up and you'll notice several indecisive candles. When we had the bearish engulfing at the daily's open level, taking away the SMA 50 and EMA 62, I took without hesitation.

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