08/05 Day Trading FOREX

Today was a great trading day, I had to excercise my patience well enough. There were several trades that didn't fit my trading criteria for one reason or another, some worked, some faded. I preffer to wait for the best set-ups than to try my luck at the sub-par ones. The reason is simple: losing is worse than winning in many levels, specially if you lose on a sub-par trade that you know you had reasons not to take. This can get you out of your game in a hurry.

So, long story short. there were a few set-ups that happened right at the announcement times, I avoid those as well, I used to trade announcements, but I no longer do, the stops are rarely honored and you may end up with a bigger than expected loss. Not to mention my broker "expands" the spread at the announcement times. So I wait for the dust to settle and if a set up is there, I then take it.

One more thing, I'm adjusting my trading capital and allocation targets for August, so the $ size of my trades are larger, but the % I risk per trade is smaller. I'm now trading 3% per trade.

1) Short AUD/USD: Took this trade after the 10:00 announcement, notice how we made it to the gap in no time. These set-ups are worth the wait! +3% ROI