Thursday, June 17, 2010

Why I don't like following the news?

Bad, bad discipline with averaging big time when I'm in danger. It was all well until after gbp/usd news time at 10:30. With good news I expected that eur/gbp will lose some of the gains add to that eur/usd testing near yesterdays high I was positive that it will nose dive. So I shorted, didn't took scalp profit but let it make new high against me where I added new short. Then I didn't get out on small pullback and it made new high and I was wondering why my plan/idea wasn't working? Then I read that Spanish auction went well and that was the thing that was pushing eur/usd up. So my news was only partial and new news was the important one and I had no idea about it.
I wouldn't so easily short uptrend, I was long prior to 10:30 if I didn't have that idea based on my interpretation of news. But my interpretation is limited and add to that I'm not so well informed with news channels that I have. So it's better to not use it and interpret it but just follow the price action. Today I did opposite and it could cost me a lot.

+14 half size pips


De'Trader said...

I hate GPB aka. 6B it costs me $600 :( with 10 ticks stopped out slippage

FX said...

That is very nasty to experience.