The markets are designed to transfer money from the active to the patient.
The best returns come from those who wait for the best opportunity to show itself before making a commitment. Those who chase the current hot stock usually end up losing more than they gain. Remain active in your analysis, look for quality companies at discounted prices and be patient waiting for them to reach their discounted price before buying.
I guess the same can be said of any market. Patience was the key learning point of today
The European session was pretty much sideways until 15:00; at which point I had packed up as I had by that time a few small losing trades. Of course you don’t always know you are in a sideways market until it’s been travelling in that direction for a few hours and the price doesn’t drop or rise. I had 3 trades on EURUSD all on the short side, but took them out before they hit my stop. I laughed (I did really) when I saw what happened to EURUSD at 15:00, the bottom eventually came away and what was my original target was hit by 15:15. Sa la Vie.
No good beating myself up about it; apart from a too speculative Pivot play on AUDUSD, which did have 1H and 4H trend support the trades on EURUSD were entered as per my strategy, exited when the market shaped for reversals and my Stop Loss was close by. I think what i could have improved on was to have had a better stop-loss on Trade 1 and then had conviction in the daily trend and sat it out. For a IntraDay trader where targets can be reached in 30 mins; waiting 8hrs is a real test of character!
Take a look at the 3 trades on EURUSD today to see what I mean.
hasta luego amigos