Took a break from forex trading for a while, but now I’m back for more pips! But first, here are updates on trades ideas that I posted a while back:
Original Trade Idea: Buy GBP/USD For A Long-Term Trade
Well, it doesn’t take a full update to know what happened. If you remember, I bought Cable at market right after Scotland voted NO on its referendum, thinking that we’ll see a reversal of the previous days’ price action. Mark Carney did hint at a rate hike some time in early 2015 after all! Instead, pound bears extended their party on doubts over the BOE’s rate hike prospects and speculations of early rate hike for the Fed. Not even a weekly chart-sized stop was enough to go against the pound bulls’ momentum! I probably should have closed early or at least tightened my stop when the weekly candle turned out to be a doji instead of a decidedly bullish one.
Original Trade Idea: EUR/USD Fib Retracement Opportunity
Before I even got stopped out on my GBP/USD trade, I was already looking at buying the dollar by shorting EUR/USD. This was back when Draghi was hinting at more stimulus and speculations of an early Fed rate hike still had momentum. Unfortunately, I played it too safe and actually waited for a 61.8% Fib retracement. The level I was watching looked good for an entry, but I could have also entered at market on new lows and adjusted my risk ratio instead. I missed out on a lot of good pips!
Original Trade Idea: USD/CHF Short-Term Trend
My last trade setup before I left was another shot at buying the dollar. Please tell me if it was a miss or a good save that I didn’t pull the trigger on this one. I was still bullish on the dollar, but I didn’t want to enter when it looked like it was way oversold. This was why I easily abandoned my trade idea when I saw that price had just broken below the rising trend line. I also thought that entering a trend trade before the NFP report was too risky. Well, price did shoot up to the .9700 area but soon plunged back down to .9470 levels. What would you have done in this case?
Phew! That wraps up by trade updates for today. I’m gonna get my feet wet in pips again this week, so let me know if you’ve spotted some setups worth watching!