Wednesday, November 19, 2008

There was no break out

I entered break out before break out occur. In the end there was no break out, it happen to be resistance. I didn't for a once thought that there will be no break out until it wasn't too late. I didn't have slightest idea that it can than prove as resistance if there is no break out. I wasn't cautious as two days ago nor handy as yesterday. I was over confident and sloppy. When position never come in to a profit I tend to give it more room. Luckily I have that rule of max loss for a day and I stick with that. Without it it would be perfect candidate for averaging and few hundreds pips risk. I really didn't think of it as short opportunity when it started to slide down. I just got stuck in opinion. Problem was because gbp/usd stayed in range as before, but eur was just sliding. Now I don't care what will happen next, I lost today and that's it. -20 full size pips.


6 comments:

ORION MACHINE said...

The only real problem i can see right now other than what we have already talked about, is that you trade so little before quitting.
I know that sounds kinda strange, but it seems like you don't really give the market much of a chance. Anyhow, it is of course your decision and I respect it entirely. I'm just stating my opinion.

FX said...

I understand what are you saying, thanks on opinion.

Darin said...

Good job on honoring the stop.

I agree that EUR/USD looked bullish on that chart and you would want to be taking the long side. But you could draw a trendline from 4:30 to 9:30 and buy at 1.2630.

FX said...

Thanks Darin on I think first comment and yes the best thing yesterday was honoring the stop. All my problems before were at that department. So this is progress that I'm pleased with.

True about that trendline. I must say that I'm not enough just technical trader, so would never probably buy that because of that trendline pattern. Momentum before 9:30 got me excited and want to buy into a break out.

ORION MACHINE said...

you know i never really zoomed in to the chart and just saw the loss. now that I look at the chart I am seriously wondering where you see momentum, all I see is a crazy chopping market. On a 5-min chart momentum does not look like that at all, with the huge reversal bars spanning hours...

momentum should look like ATR gradually increasing from low to high with price action taking a clear direction. The ATR on this chart starts at high and remains there really... just a thought buddy.

FX said...

Maybe I'm using wrong word to describe what I want. If you look at 30sec chart at the right you can see pick up from 9:18 to 9:21, on 10sec chart that I was looking it was even more obvious. Price just picked up. So, I call that momentum which is usual behavior before break outs. So I'm describing as momentum when price start to move fast and strong in one direction, different in character than moments before. It's hard to see on chart, but live it just looks like move with big force behind it.