Thursday, July 30, 2009

07/30 Day Trading FOREX

Today the market was flat all the way untill the US markets opened. I made a trading mistake by taking a trade on the EUR/USD without properly evaluating the market environment. Later on the day I took a second trade that fit my criteria properly and made it to its target. All and all, ended up slightly negative for the day.

Capital Allocation: A+ Properly allocated for the trade
Keeping Limits: A+
Stop Management: C Did not manage it on the first trade
Trade Set-up: B Taking the first set-up was a mistake.

1) Short EUR/USD: Took the trade without waitting for a retracement, the breakout set-up is confirmed with a retracement and continuation. If it had retraced and then broken the low point highlighted in the chart, then it would be a good set-up. I also failed to adjust the stops, no good reason why, just got caught as a "deer staring at the headlights" mode. -4.17% ROI

2) Short EUR/USD: This was a great example of the same breakout pattern, notice we broke the trendline, moving averages and all the support lines in the chart. Made a clear retracement and then broke the low point. Took the trade without hesitation and rode it to its target. +3.87% ROI

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