After taking a look at the markets this morning and seeing the huge gaps that occurred on Sunday opening I very nearly decided to just quit for the day or come back in the afternoon as nearly 80% of the daily range was taken up just in those gaps. All the 10 pairs (Majors) were also looking like they were starting to retrace their steps of the last few days. My strategy forbids these trades so I stayed out; until 09:30. Cable started to show some momentum to the upside inline with the major trends so I took a position; but after getting into a little profit cable weakened and I took the sick trade off the table before it hit my stop loss; saving me 10 pips, which would have been taken a few minutes later. So out for -16pips and -0.75% for the day. Went to gym, had lunch and re-reviewed this mornings action. Could I have traded ? Was I right to stay out ?
Well my strategy would have yielded me 1% on each of Cable and Euro had I taken the counter-trend position. Oh well, I know of umpteen occasions where that wouldn’t have happened!
Get back to reading Jack Schwager “New Market Wizards” and sort out the shed
Trade that went no-where on cable below :
Good luck out there!