Monday, January 22, 2007

Some older trades

It's something personally very rewording in picking exact moment of reversal, but for every one like that in EURJPY comes ten wrong moments and than it's stop loss or some kind of unpleasant money management like averaging that can bring more losses.

Some reversals can easily be spotted fast enough to make a trade, but I'm afraid that too many losses is the price to master that kind of setup. It's enough to be disciplined and use really small s/l so if you are wrong get out immediately, and if not get some nice profit of it.

It's fast and dangerous, maybe the adrenalin part is so sexy in that kind of trades. Every trading book say buy retracement in the uptrend, but for some people it's easier to say than to do it.
But honestly sometimes it's easier to spot reversal than having belief in continuation of trend.

It's always hard to witness that profits were taken too soon.

But for me it's always harder to have great entry and great profit potential and than get stopped out on b/e or s/l.