Friday, August 14, 2009

08/14 Day Trading FOREX

I had a great session Today, took 3 trades, they all worked, but more important than that is the fact I was trading "in the zone", completely focused in the markets, without concerns over performance (Win or lose, P&L, etc), and executing all my trades with a lot of certainty and precision.

That is the complete opposite as to how I was trading early in the week. What happened? I cleared my head about the recent increase in size, I freed myself from performance pressure, and I increased my FOCUS by reducing the ammount of currency pairs I'm trading. In this case, Less is More!

1) Long GBP/USD: This is a great lesson on plan the trade, and trade the plan, Look, I wasn't beeing greedy nor fearful. I simply entered a trade that took a while to make its target. Meanwhile, I kept managing my money by adjusting the stop exit. The GBP was moving without correlation with the EUR (nor the CHF), but it was going up and I did not want to chicken out of a trade just because it was taking its sweet time to resolve itself. It paid off, but if you read enough of my postings, you'll see that it could simply be a stopped out trade, one way or another, my goal was to manage the trade, the result is up to the market. +0.9% ROI

2) Short EUR/USD:
Took the trade despite knowing there was a trend-line in the way. In a way, this was a mistake, but this was an old trend-line Wally showed us in the on-line chat room. Price DID oscilate around the trend-line, and I ended up scratching the trade when it approached 80% of the target and backed off. +0.33% ROI.
3) Short EUR/USD: After the consumer confidence announcement. The pressure was down, I entered when prices crossed a previous candle's low. I wanted to ride the trade for as much as it would give me, so I kept moving the stop. As it turns out, it bounced and hit my stop. Not a problem, it was already a win-win scenario. +0.14% ROI

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