Tuesday, November 18, 2008

Heavy scalping

Well it really was heavy early morning scalping. Funny thing was that I first wanted to go long gbp/usd at the area marked with yellow arrow but. I thought that it will go up to yesterdays high at 85, but I was afraid to do it. I was afraid of having a loss so early, not knowing yet how the market is behaving. It's really funny because I have that first trade stage fright and after I get all mad throwing trades all over the place. Well that idea would get me nice profit, but it only stayed as idea.
Probably because that thing worked I wanted to trade, than I usually go in opposite direction. As I did in my first trade, but man, it was 20 pips off the high, it's no place to short strong trend. So I got out immediately because it was just bad trade.
I went long in gbp/usd in second trade because eur/usd was really pushing up and I knew that it will pull gbp/usd back toward highs. You can see that on 10sec chart from which I was taking all of those trades.

Than up move started to look fishy to me and I shorted eur/usd. It made a run up so I exit 3, 4 pips before the max stop of 20. When I saw that it didn't go up and that I wouldn't get stopped out I throw another short 7 pips lower than my loss point. At that point I was really deep in scalping mentality and trading on 10 sec movements. The big drop started and I jumped in, didn't know what it was so took sure profit. Sometimes it can go up as fast as it falls in spike so no reason to stay in and guess, and I was scalping so I had nice scalping profit.

Next trades I all ready lost my concentration and I was jumping in and out. Onada with it's great spread of 0.9 pips made for all those 3 trades sum of -1 pip, and last one was small profit. Than I decided that it's enough and that I'm not in the shape to trade any more. I have concentration span of goldfish for scalping.

I'm pleased with all of this. Market is like back in normal way of behaving, spread is normal and I scalped nicely. All trades were half size so total of +14 full size pips. Later there was more nice opportunities but I wasn't feeling any want to trade more so I rather stayed out.





1 comment:

Anonymous said...

i try and tell myself to remember, that the market is always new to someone. it is always churning and refreshing into one form or price action to another. Recognizing the difference is key. As traders we should be able to look at the charts and almost immediately see how the market is behaving.

As far as the market returning to "normal" I am glad it has come back. My new indicator has helped me determine current price action and to adjust accordingly.

Add the ATR(1) and make it black. Then add a SMA(7) on top of it, thats the one you want to be able to see. Then I draw horizontal lines at 5 and 10. I make the 5 green and the 10 red. If I open the charts and the SMA(7) is above the red line, I know I have to make my zone larger than 10 pips. It has helped me since I've been using it.

I will e-mail you some charts.