Tuesday, July 28, 2009

07/28 Day Trading FOREX

Today was an "ok" day, I took only one trade, but took it twice... Ok, ok, allow me to explain: The first time I took the trade, it was right after the consumer confidence announcement, so I got whipsawed to my stop. Then the market resumed its direction and I got in to ride it to my target.

I also want to point out that I have been extra conservative with my trading, there were several set-ups that I didn't take because they had some sort of support/resistance between my entry and the profit targets. Eventually they made their way, however, not the usual clear cut that happens when the path is clear. I pasted an example of a trade I didn't take Today.

Capital Allocation: A+ Properly allocated for the trade
Keeping Limits: B Limit was not properly set up on the second time I took the trade
Stop Management: A+
Trade Set-up: A- Spotted a good set-up and took it, got whipsawed the first time.

1) Short GBP/USD: Took the sell twice, the first time got whipsawed (-4.02% ROI), the second made it to the target (+3.17% ROI). At the second entry my limit was a few pips off the target, so it didn't quite fully recover from the first trade.

a) Short EUR/USD: We had the 4250 in the way to the target, see how it bounced from there, this bounce could have hit my stop. Assuming it didn't hit the stop, it took the EUR/USD 15 to 20 minutes working through the barriers. In the trade above, we got to the target in 7 minutes

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