Trade Closed: 2010-9-13 00:47
I got faked out badly! After EURUSD made a new low, it just went back into its trading range and broke out the other way.
Stopped out at 1.2775 for -1.00%
Pipcrawler and the other FX-men warned me about the psychological stress associated with trading, but this is something I did not expect. Grrrr… I know that my loss aren’t really too big, but it’s just way too hard not to get attached to my trades. After all, this is my money I’m talking about!
Trade Idea: 2010-9-9 3:13
How are you guys doing today? I’m finally ready to get back on the trading horse after missing out on my last trade. What better way to hit the ground running than to short EURUSD!
I’m taking this setup primarily because of how bearish I am on the euro. Earlier this week, the euro received a serious hammering across the board on the news that some of the banks that participated in the stress tests did not disclose fully how much government debt they were holding. (Holla to Forex Gump for this information!) If I remember correctly, the results of the stress tests already received a lot of bad press when they first came out as they were too lenient.
As far as technicals is concerned, I’m hoping to see the pair break its rising support since EURUSD has tested it several times before. The latest pullback was quite weak so I think it can go all the way down this time. In anticipation of the break, I’m placing my short stop order at 1.2650. If things don’t go my way, I’ll exit just beyond yesterday’s highs. I think this is a safe distance away since it’s already beyond the pair’s daily range.
Looking at the economic calendar, the upcoming weekly unemployment claims and trade balance from the US could serve as the catalyst for the breakout to the downside. If they come out worse than expected, we could see risk aversion come back swinging again.
But enough about that and let’s talk about where I plan to pocket pips! I actually have two positions on this trade. I’m eyeing the 1.2600 level for my first profit target. I haven’t determined my second profit target yet. I’m hoping to let it ride if the trade proves to be a winner, so I might just trail my remaining position by 110 pips! Wish me luck, guys!
Short EURUSD 1.2650, pt1 at 1.2600, pt yet to be determined, sl at 1.2775. I will risk 1% of my account.