Trade Closed: 2012-12-03 23:30
Yep, that chart above pretty much says it all. The joy I felt after seeing the daily candlestick close in the red on the first day after entering my short position was extremely short-lived!
In just a span of three days, I went from being up 30 pips to down a hundred. Before I knew it, price was back above the 38.2% Fib, on its way to stopping me out. What. A. Bummer.
The euro was an absolute beast on the charts towards the end of last week, as the markets focused on Germany's approval of the Greek bailout deal. On the other hand, the Aussie was crippled in recent days because the markets had been anticipating a rate cut from the RBA... and as it turns out, they were right!
The RBA delivered a rate cut earlier today, but surprisingly, the Aussie rallied at the announcement of lower interest rates. This suggests that the markets had already priced in the cut from 3.25% to 3.00%.
Stopped out at 1.2473: -100 pips / -0.50%
That's that for this trade. It's a pity I had missed so many good trades in the past, but I'm not gonna let this trade get me down. After all, thanks to proper risk management, I only lost 0.50% of my account, which is quite tiny when you think about it. I'mma keep my chin up and I'mma try my best to end this year on a positive note!
Thanks for following, guys! I'll catch ya'll again soon!
Trade Idea: 2012-11-28 00:01
After FOUR weeks of not getting triggered, I've had enough of this nonsense! Luckily for me, this setup on EUR/AUD lines up nicely like a Steve Novak three-pointer! Ain't it a beauty?!
After retracing last week, EUR/AUD has been finding tough resistance at the 38.2% Fib. Just take a look at all those dojis that formed! Furthermore, Stochastic just crossed over in overbought territory, indicating that we may soon see a period of selling!
On the fundamental side of things, I think we're seeing risk aversion creep back into the markets, as the Greek debt deal didn't exactly spark any real optimism. There's still a whole lot of details that need to be ironed out, and government officials still have to approve of the austerity measures. Couple this with the lack of any progress with regards to the U.S. fiscal cliff, and I think higher-yielding currencies could be in for some pain over the next week.
The key of course, is picking which non-safe haven to go with. At this point, I'd rather put my money on the Australian dollar (which has remained afloat throughout the past few months) than the euro (which has been trading to the whims of the market).
Sold EUR/AUD at 1.2373, stop loss at 1.2473, profit target at 1.2200.
Anyway, I jumped in at market at 1.2473 and am going with a 100-pip stop. I think this should give my trade enough breathing room to withstand volatility. I'm ultimately targeting 1.2200, which is just below the recent swing low. As usual, I'll be risking 0.50% of my account on this trade.
If you guys have any comments and suggestions on how I can manage this trade, feel free to hit me up in the comment box below!
Q3 2012 Trading Performance Review
Weekly Watch: November 26 to 30, 2012
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page
Join my circle on Google+
- Long-term Fib Play on EUR/AUD - Trade Closed 01:30 02 May 2013
- Day Trade: Technical Setup on EUR/AUD - Orders Cancelled 22:10 22 November 2012
- Zigging and Zagging: Playing the Range on AUD/CAD - Profit Target Hit! 23:15 19 December 2012
- Buying at Bottom of CAD/JPY Range - Orders Cancelled 22:01 19 November 2012
- Break or Bounce on EUR/JPY? - No Trade 03:01 16 October 2012