Monday, June 1, 2009

Scared little chicken

That's how I feel. In at the breakout of the last high after six hours and it reverse 30 pips in a few minutes. I add one more counting that it's reaction to the high and that now it will bounce back. Price is consolidating a bit and then head my way. I'm happy because it's now right around my b/e level at 419. Next minute all of the sudden it's flying back down making new low. Another one 40 pips swing. Then gradually back up, this time through my b/e level, to the new high. But it's all on eur/gbp weakness, I don't trust that so much and I'm taking profit. While I write this it's back below my b/e.
I'm not so used to US session, it's a little bit wild. I was trading with 2/3 size positions. Swings are costly, but it's my usual trading. I've done that over last year or more, so I got to ignore dollar amounts and trade however I know.

+23 full size pips


rob said...

I have been watching your blog for a while and its a great read. Keep it up!

In regards to your recent bad days I can definetely relate to that! Im not sure if this will work for your trading however I make use of a hard stop of X dollars per day. If I hit this then I must shut down until tomorrow. Its amazing how quickly you can undo weeks of profit in one day!

Another thing I have been doing lately is letting price break resistance/support points before I enter positions. In this way I am forced to see a trend emerging and enter only if the movement continues rather than trying to force trades.

Just a thought anyway...

FX said...

Hi rob, nice to see you here and thanks for following blog and words of encouragement.
If I could only be disciplined enough for hard stop of x dollars per day. I'm not :)

I have pressure from size that I'm trading now lately. My trading performance definitely deteriorated. On the other hand I strongly believe that I need to learn trading for bigger dollar amounts for my usual 5-30 pips swings. So I need to go through this day by day as it goes.