There was nothing on my radar this morning and my fingers were getting itchy to pull any trigger. I was following AUD/USD as there would be RBA's rate decision at 10.30am local time.
At about 8.40am I was jolted by a relatively big red candle move downward. It even penetrated the lower Bollinger band. Since I was betting on an Aussie rally given an increase in rate and it was out of the band, I figured it would be an opportune time to enter long as the candle was pulling back inside the band. I incurred a big loss on that bet. Again, just before 10am, there were indications from the stochastics and MACD to enter. I did with a bigger lot and waited for the rate increase to be announced by RBA. I had a relatively bigger bet than usual now.
When the clock struck 10:30am nothing moved. I was pretty heavy and decided to take out 60% of my open position at a meagre gain of $6.00. I was wondering why it did not move as it was supposed to. Then I realised that I was betting at local time when it was supposed to be EST (New York Time). I WAS 1 HOUR EARLY!!! That was a dumb mistake. To add insult to injury, the market was moving slowly but surely in my direction.
I still hold 40% left to ride the rally. Much to my horror, the market moved in opposite direction when it was news time. I was hit by stop losses and couldn't quite figure out how a rate increase did not trigger a rally. By 12.45pm, the Aussie moved more than 110 pips against my position. UUgh! It hurts!
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