The moment I turned on my laptop I noticed that AUD/USD was climbing up from the lower Bollinger band almost touching the SMA 20 line. I thought this must be the start of another Aussie rally. It has been heading south the past week after going on a very strong uptrend. USD/JPY & EUR/JPY were walking the lower Bollinger band, a good indication of a sustained downtrend. So I went long on Aussie and short on JPY.
In about 5 minutes my position on Aussie was obviously wrong. I had to cut loss immediately. My JPY pairs were returning good results. By the time I started my morning exercise on my treadmill, I was way ahead for the day. I played only mini lots. Eventhough the pip profits looked comfortable, the dollar was pretty much very minimal. I am still new in this game. I would go for the pips instead of dollars. It is much safer that way.
The good early morning trades boosted my confidence and ego. By mid day, I was in and out several times, breaking my own rule of limiting the number of trades unless they are absolutely "an offer I can't refuse". By 5pm, I was already doing a total of 9 trades!
I put up an entry order for the Kiwis hoping that early bird catches good worms. I was wrong. I bought EUR/USD when it touched the lower Bollinger band and hoping to ride the Italian PPI news. I was wrong. I went a couple more times on Aussie and was deeper in the red. By dinner time, I gave back 75% of what seemed easy early morning catch.
After dinner, I waited for the Canadian GDP news and saw USD/CAD shot up 56 pips. I did not pull the trigger. After cursing myself for missing the obvious, I prepared to trade the USD for the ISM news. I bought EUR/USD 30 minutes earlier when the stochastics crossed. It was the best decision of the day. By the time ISM news came up around 11pm, the market reversed but I was already comfortably secured with my stop loss.
Overall, the late gain partly covered my mid day losses. I was happy to call it a day.
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