Wednesday, October 21, 2009

Gbp/usd fireworks

Trend day and after news time for gbp/usd action time. First scalp was o.k., all trades except last were made with half size. Second trade, I went long because at the time gbp/jpy just broke 150 that I believed would be harder at the moment. So I was looking for acceleration but it didn't came. I made very poor job of not getting out. So I lost all my profit from previous trade and much more. Gbp/usd was up 70 pips in 5 minutes after the news, I didn't pay attention to that and it was really extended and when wave of up momentum stopped I had to get out and not stay and wait.
Third trade was pretty much gambling that trend will continue. I wanted profits back. I add one more half size trade but it didn't brake previous high with strength. I did a good job of giving those two trades enough chance for two, three minutes and getting out when it reversed.
Fifth trade was a suckers trade because it spiked up seven pips in a second and I just jumped in and then it reversed back. Luckily for me it was really strong trend so it quickly came back and then I knew that we will have continuation most definitely. So I doubled that trade again with new half size trade. Unexpectedly it hit some kind of resistance after 5 pips and it was very unusual and I got scared and closed it.
Well soon enough it continued and then I made another trade now with full size. Foolishly bold, but it was strong trend. It would be better if I stayed in those two before it. I closed very quickly. Oanda's charts didn't update for 5-10 seconds and I just hit close to get out expecting that trend brought it more up while Oanda's hiccup in updating get resolved. It did. Funny I got executed at level that never existed inside of bid ask at that time, you can see it in a second chart. I hope that they will not take it from me, sometimes slippage goes into our favor.

Good thing about my trading today was that I didn't have one thought about going against the market in some short trade. Bad was showing how I was slow in getting out when I'm in a loss. Because of such fast market my trades were half size. So after first loss I was down only -7 full size pips. I was lucky with strong trend that forgave me and corrected with it's tide all my errors and questionable judgments. That's why it's important to go with the trend.

+16 pips

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