First off I find it really difficult when first thing in the morning you are confronted with charts that from the outset you know spell trouble. JPY pairs were bullish on 5m but bearish on 1H, so left alone. With UK Jobless No.s due out at 09:30 cable should be treated with caution, if not left alone until well after the announcement. That left EUR; but MACD was in huge divergence on the 5m and 15m charts didn’t want to look for long positions.
So what to do ?
1) Go back to bed, come back to the table at 12:00 and seen if things have sorted themselves out at all.
2) Stare at the charts long enough so you convince yourself you can see a trade ?
3) Catch up on some learning, blogs strategy development etc
Well feeling like I did, options 1) or 3) should have been the preferable ones. But no, felt the need to do something…….durrrrrr!
Trade 1 : 5m Counter Trend Pivot Trade Long on EURGBP : The very title of which should tell you a low probability. This got stopped out for -31pips at news at 09:30
Trade 2 : 1H Short on EURUSD. The chart indicated to me that EUR had been oversold and needed some correction. Plenty of room back to the PP, or 50/200ema. Trade taken at 0900 when the low of 0800 was taken out. Price moved well, at 15:00 was up +50pips on trade and 1%. So time to exit ? Price was hitting PP and showing resistance; 5m chart MACD showing some weakness…..no I wait, and wait and wait…end up getting a little fearful and exiting with +10 pips at 17:00. incidentally, 3 hrs later the 50pips is back on the table. Learning : Trade the timeframe you kicked off the trade with. EURUSD Chart below – in as 5m as easier to see the decision points. Don’t think I’ll trade 1H again, I don’t have patience for that long !
Tomorrow and onwards I will just trade the strategies I have been taught and stop the improvisation. I promise myself !!!
Hope your days were good.