About Pick of the Day

Pick of the Day Author

At the end of each trading day, I will find what I believe is the best looking short term trade setup for the upcoming trading day. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. Trades will be posted by 1 am ET, Monday through Thursday evening.

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December 2006

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Trade Review: EUR/USD

Posted 16:18 08 December 2006 | 5

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Today was a wild ride wasn't it?? It was like those old FX days of crazy volatility that we haven't seen much of lately. NFP came out pretty much in line with consensus, but there was a downward revision of Oct number to 79K from 92K. So, we saw some volatility after the NFP reports, but the mother of all moves came after US Treasury Secretary Paulson commented on how a "strong dollar" is in the best interest of the US, and how today's reports was good news for the US economy.

Our trade triggered shortly after the U. of Michigan number was released and we saw EUR/USD drift lower afterwards. After pt1 was hit I closed my position for +40 pips, and suggested to those who didn't close to move stop to break even and go for pt2. I hope a lot of people stayed in, because after the surprise comments from Paulson we saw EUR/USD drop about 120 pips, easily hitting pt2 along the way. What an awesome way to end the trading week!

Lot 1: +40 pips

Comments (5)

Hi all. My name is lino and im from South Africa. Love your site and will be following, im new to forex so realy appreciate your excellent site.
piplino | Posted 05:55 11 December 2006
I see I have a lot to learn. I am new to forex trading.
deputy | Posted 10:09 11 December 2006
Thanks for the comment piplino, glad you like the new site! Don't worry deputy, with hard work, time and experience the forex market won't be intimidating anymore. :)
pipcrawler | Posted 15:44 11 December 2006
Hi, i like this site. Good job. Last friday was my personal nightmare. I was EUR/USD short, and after the job data release, everthing looks fine, i decided to had a coffee in my kitchen. Unfortunately, i forgot to set up the stop/loss. I came back and the the USD raised. I thought by myself its a short move the dollar come back. big mistake. :-) The margin call was the end of all my hopes. But worse enough, i was angry and i bought a long position EUR/USD. And as i thought this was a worse friday, i was wrong. The Euro drifted and i loose more money. But the good thing is: I had learned a lot. Never forget the stop/loss and never go against the market. This was a expensive lesson for me in my 4th week of trading. Regards Michael
penguin001 | Posted 19:51 11 December 2006
Hi penguin. I did the same thing and still feeling it. I went short the EUR/USD at 1.3180 and the market totaly went the opposite direction. I went out to do something and when i came back, big oops. Im still in at a big loss but there might be some hope for a pull back.
piplino | Posted 02:17 12 December 2006

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Forex Blog: Pick of the Day

"Action may not always bring happiness; but there is no happiness without action."
Benjamin Disraeli
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