AUD/USD Day Trade: Jumping on the Aussie Wave – Update

Trade Update:
Oh no, not another loss! I guess I’m not as lucky in day trades as I had imagined. Well, not while I’m thinking of a long weekend vacation, anyway.

Last week I decided to sneak some pips in with a day trade right before the long weekend started. I thought that I could jump on the strong Aussie wave since Australia’s PPI report printed in the green.

Too bad I didn’t handle it as well as I thought I would! First, I failed to close the trade by the end of the day, which technically doesn’t make it a day trade. I’d like to blame my new fitness program that tired me out, but by the end of the day I think it’s still my fault.

AUD/USD day trade...not

Goodness, if I had known that I was going to forget closing my trade, I probably would’ve widened my stop loss! As it turned out, AUD/USD moved high enough to move my trailing stop to 1.0712 where I eventually got stopped out. If I only stuck with my original stop loss, I would’ve made my trade of the month!

*Sigh.* Anyway, here’s what happened to my trade:

Stop loss hit at 1.0712, down by 25 pips or 0.16% of my account.

I hope I have better luck (and stamina) in my next trades!

Trade Idea:
I’m back guys! And this time I have a day trade idea!

Someone’s really gunning for that “Rocketeer of the Year” award, and that’s AUD/USD! As though reaching a new record high yesterday still wasn’t enough, the pair burst through the 1.0700 handle and made another new high at 1.0719 just a few minutes into the Asian session. Talk about being up and about!

AUD/USD day trade

I really should be catching up on sleep, but I just couldn’t resist jumping in on this strong Aussie wave. With a pinch of courage and a shot of determination, I decided to brush my breakout fears aside and just enter at market when AUD/USD soars past the most recent high. Also, when I reviewed my post-trade entries and my weekly comdoll reviews, I noted down a bunch of “resolutions” that I should stick by:

1. I seem to do really well with day trades. I should keep looking for shorter-term setups.

2. AUD/USD has been bagging that “Best Setup for the Week” medal a lot lately. I will be watching this pair like a hawk so I catch those winning moves.

3. If there’s not enough reason for the trend to end, it’s best to just go with the flow.

Besides, how can I trade against the Aussie when all fundamental stars are lining up to support it? Strong anti-dollar sentiment has been motivating the Aussie bulls to push the pair past previous record highs, while Australia’s better-than-expected PPI released a couple of hours earlier is putting more pressure on the RBA to increase its interest rates.

I still have to be careful on this one though. The long weekend ahead might motivate traders to take profits on their Aussie trades, so I’m also closing my trade at the end of the day. That way, I won’t worry about anything when I join my friends in an island-hopping trip for the next few days. Whoo!

Anyway, here’s what I did:

Long AUD/USD at market (1.0731), stop loss at 1.0675, then I’ll close at the end of the day. Of course I’ve already trailed my position as soon as the stronger-than-expected PPI report was released.

Whew! It feels good to be back! Special thanks to all those who put up their comments on my blogs and are giving out there ideas on Twitter! Let’s cross our fingers that this day trade will finally give me some pips!

See ya this weekend when I post my Comdoll Weekly Replay!

Happy


  • xbizmaster

    hi, may i know what charting software is that?pls? thanks

  • PipMast0r

    hi happy … :-)

    weeeellllll, i prefer such a trade BEFORE it broke those highs – the point, where you can expect relatively predictible movement (there is a logic why different traders, trading different setups and timeframes, especially the big money-institutions – who are known for trading on the daily – might have orders right in the market at that marks). due to that fact, it´s better to set the trade a few points above the high, especially, when another more or less important high is in the same area around – few pips up – shorties could´ve set that point as stop-loss, flat ones might set an order with the same idea like you and long guys have no reason to get out, so all different market players could cause a move, bringing you a good w:l-ratio.

    in short: jump in before the big movements – happening during the break of previous highs – if it breaks at all … just because the market went up last periodes is not enough to jump in, would be better to be more patient and wait for a retracement to get a better spot.

    it always pays to have more reasons to get in, whatever they are – the more, the better – but jumping in, because the market went up the last couple of periodes is not enough, where is your analysis of higher timeframes i.e.?

    wait for a retracement at least.

    as always: sry for my baaaaad english, hope you all can follow… ;-)

    • happypip

      That’s cool. Thanks for the feedback PipMast0r! Breakout trades aren’t usually my strong suit but I tend to miss out on good market moves if I keep waiting for retracements. That’s why I’m trying to jump in at market with half my usual position size then wait to add at a retracement with another half.

  • foricks

    glad to know it happens to the best of us, too…I have had a few and document them as “execution errors” (like forgetting to cancel an entry order after manually creating a market order – d’oh). Sometimes they work out/sometimes they don’t.
    Care to comment on trailing stops. I usually don’t use them since I tend to open orders at least every 4 hours.
    Thanks.

    • happypip

      Hmm, so far trailing stops have been protecting me against huge losses for the most part. It just didn’t work out so well in this trade. You see, I used to move my stops manually but I recently switched to using trailing stops instead so they move automatically and I don’t have to keep checking my trade so often.