Orders Cancelled: 2012-11-22 22:10
Here we go again… I missed another would-be winner! Drats! What a time for the euro zone to come up with good news!
For a change, we got word of positive developments in the euro zone yesterday. Not only did the Spanish bond auctions turn out better than expected, but word on the street is that German officials believe Greece is close to receiving its next financial aid payment. In fact, Chancellor Angela Merkel says that everything might be ironed out by Monday!
This bit of news boosted traders’ confidence, enabling them to take a chance on the euro and boost it up the charts. In fact, it was one of yesterday’s strongest performers!
The bad news is that this kept EUR/AUD from getting past the 38.2% Fib level to hit my buy order at the 50.0% Fib… and so I missed out on another positive move.
Surprisingly enough, I’m not as bummed out about missing this trade as I was with the others. I guess I’m getting used it. Besides, I was simply sticking to my plan, and entering any higher than the 50.0% Fib would’ve compromised the trade’s reward-to-risk ratio.
In any case, I’m learning to be more patient with my trades. I’ll catch the next big move, it’s just a matter of waiting for the right time to strike!
Thanks for following, guys! I hope you had better luck. Catch y’all on the other side of the weekend.
Trade Idea: 2012-11-21 23:10
Sometimes, the signals line up so nicely that you have no choice but to take the trade. That’s exactly what we’ve got on EUR/AUD!
After topping out at 1.2400 yesterday, the pair is now in the middle of what looks like a technical retracement. Not only is the pair approaching a rising trend line on the 1-hour chart, but it is also about to test the 50.0% Fibonacci level as well as potential resistance-turned-support at 1.2350! With Stochastic about to hit oversold conditions, I think we could see buyers look to jump in at that level as well.
Just a like a bowl of bunny ears, how can I say no to this setup?!
My only concern is that we’ve got a bunch of manufacturing and service PMIs headed our way later during the London session. Depending on the results of these reports, it could either make-or-break euro price action today.
In order to limit my exposure to potential volatile moves, I’ve decided to limit my risk on this trade and put only 0.50% of my account on the line.
Buy EUR/AUD at 1.2350, stop loss at 1.2320, take profit at 1.2400.
I’ve decided to go with a tight stop loss because if price does hit that level (and in the process, break the rising trend line), chances are that we could see EUR/AUD sink to new lows. As for my profit target, I’m not being too ambitious, setting it just at the previous high of 1.2400. Besides, this still leaves me with a reward-to-risk ratio of about 1.67:1, which ain’t too shabby for a day trade.
If you’re lookin’ to join me on this one, lemme know how you plan to manage the trade by hitting the comment box below! Good luck, everyone!
Q3 2012 Trading Performance Review
Weekly Watch: November 19 to 23, 2012
Read about my trading framework
Follow me on MeetPips.com
Follow me on Twitter
Like my Facebook page
Join my circle on Google+
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.