18 Nov This Week’s Trading Round-Up; 17th November 2012
As mentioned in last Week’s update, my eye has been off the ball over the last few Week’s due to a number of commitments I’ve needed to make in my personal life outside of trading.
Don’t get me wrong, I’ve still been following the markets and day trading, but not had the time to really go into detail with new analysis. Some Week’s ago I posted analysis on both EUR:GBP and CAD:JPY, and felt both those trades were still valid to enter despite them heading towards oversold territory, the implication was simply just a less good risk/reward.
Both positions were taken this Week, with disastrous results! EUR:GBP wasn’t too bad, went into a fair profit although not quite enough to move the stop loss to break-even. After a few days of sitting in profit it reversed and stopped me out for a 35 pip loss.
CAD:JPY was not quite so kind however! Admittedly price was nearing the bottom of it’s 3 Month range but there was enough evidence on the chart to suggest the big break-down I’d been waiting for was imminent. Unfortunately I was wrong. Within 2 minutes of entering the short position I was 10 points underwater, within 2 hours it had produced the longest run of green 5 minute candles in over 3 Months. Within 2 days it had staged the largest 2 day rally seen in a long time, right to my stop loss which was set at the top of the 3 Month range. In fact, my stop loss was one pip higher than the high achieved by price but I was caught out on some spread skewing. Of course, it duly sold off 100 points immediately after stopping me out. Without doubt, this will go down as my worst swing trade this year, or possibly ever!
Going forwards, I’ve not looked at any charts in a few days so that’s what I plan to do over the next day or 2. If EUR:GBP breaks the 31st October high I may look to change my stance to bullish and enter long. If it doesn’t break that high I may consider re-entering short on the basis my stop loss was poorly placed on the previous trade.
Until a time comes when I can have a good look through the charts, there’s not much more I can suggest right now.
Hope your trading is going better than mine has been!