Thursday, July 16, 2009

07/16 Day Trading FOREX

Today was a great and positive day! The currency market was moving a lot better than Yesterday. Now, there was a lesson in the day, the lesson being: Sometimes we take a trade that isn't quite the set-up we look for, we take that trade and it works, then we tend to seek out for more of the same, and guess what? Because they are not the set-up we have identified as our best edge, we end up chasing trades that don't fit the scenario and lose more than we win. So, let's see if you can identify ONE missing component in my following trades:

1) Short GBP/USD: Took this reversal after GBP failed to rally above the 6450 price zone. Waited for a 1-2-3 to give me an entry and got to the target.

2) Short EUR/USD: Similar set-up, noticed the weakness at the top and took the 1-2-3 trade. EUR then went on a sideways fashion, I scaled out 1/2 with 0 and kept managing my stop (bringing it down) for the remaining 1/2 of the position.

3) Short GBP/USD: Once again, weak top, and 1-2-3 reversal. What? What do you mean I got stopped out?!?!?. One could go on a blame game, I was angry with myself for about 30 seconds, then took a deep breath and went on looking for what was I doing wrong? Found it fairly quickly, can you guess? Take a look at where my support trend-line is.. It wasn't a break of the trend-line. That is a key component that I look for on these 1-2-3 reversals. Because it wasn't there on my first trade of the day (the one that worked), I started ignoring the lack of it in the remaining trades. Well, got myself back in the game.
4) Short GBP/USD: Now we have the 1-2-3 reversal with the confirmation of my support trend-line being broken, and the additional confirmation of the resistance trend-line pointing down.. This was a great set-up. Took it to the target. At the exact same time, a similar set-up happened on the EUR, and about a few minutes before it, the same on AUD.
So, let's have some fun.. I love 1-2-3s! (See the number of expresso shots?)

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