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Trade Closed: 2011-12-09

And just like that, my second position got stopped out… at breakeven, of course!

As Forex Gump mentioned in his entry discussing the EU Summit details, traders initially rejoiced when the European leaders announced their new budget plans and the early launch of the ESM bailout funds. This was enough to push AUD/USD out of its weekly range and trigger my stop.

AUD/USD Closed Trade

However, the rally faded in a jiffy as traders realized that the newly unveiled plans for the EU probably won’t be enough to keep the crisis contained. Besides, the U.K. rejected these proposals, which means that the EU cannot enforce the rules on all its member nations just yet. With that, AUD/USD tumbled all the way down to the 1.0050 area.

I know I could’ve made so much more on this trade, but I’m happy with how I managed my risk. As I mentioned in my Comdoll Weekly Replay, I would’ve gotten stopped out anyway if I kept the second half of my trade open without adjusting my stop loss. If that happened, I would’ve erased my profits from this trade completely!

But I thank my lucky stars that I was able to make the right decision. Here’s how my short AUD/USD trade turned out:

P/L: +50 pips / +0.35%

I’m sure you have a ton of suggestions on how I could catch more pips so don’t hesitate to drop a comment below or holler at me through any of these accounts:

@Happy_pip Twitter
Playing with Comdolls Facebook page
Happy Pip Comdoll Corners

Chips, dips, and I look forward to your tips!

Happy time

Trade Update: 2011-12-08 8:56

Time to lock in some pips! Looks like it’s going to take more than a couple of disappointing economic reports from Australia to rain on the Aussie bulls’ parade!

A few hours ago we saw AUD/USD plunge below 1.0250 when Australia released its employment reports. Not only did the country’s unemployment rate rise to rise to 5.3%, the number of employed actually decreased by 6,300 in November!

Unfortunately for my trade, the bearish report wasn’t enough to firmly place AUD/USD below the 1.0250 mid-range support. The pair bounced off the minor psychological handle, and even went back to near my original entry area a few times!

AUD/USD Trade Adjustments

Since 1.0250 was holding like a boss, I decided to tweak my trade plan. I closed my first position at the 1.0250 support when it was retested a couple of heartbeats ago, and then I moved the stop of my second position to break even.

What do you think of my new plan? Should I have closed my second position early, or should I wait for the pair to break 1.0250? As always, your thoughts are much appreciated!

@Happy_pip Twitter
Playing with Comdolls Facebook page
Happy Pip Comdoll Corners

Just keep pippin’! Just keep pippin’!

Happy time

Trade Idea: 2011-12-07 00:57

Ho hum, it looks like most pairs are consolidating lately and I just can’t resist this opportunity to play the AUD/USD range. As Big Pippin pointed out in today’s chart art, the pair has been stuck between support at 1.0150 and resistance at 1.0300. Stochastic is already lingering at the overbought zone, suggesting that Aussie bears are ready to pounce. But, until the oscillator crosses downwards, the bulls could still take the pair up to the top of its current range.

AUD/USD Channel

You might be wondering why I have a bearish bias on the Aussie. Well, wonder no more! You see, the RBA just cut rates by 0.25% this week, bringing their benchmark rate from 4.50% to 4.25%. If you’ve been keeping track of the RBA rate decisions, you’d know that this was their second rate cut this year, as the central bank continued to worry about persistent global economic threats.

Besides, there’s still a lot of uncertainty in the markets as traders await the outcome of the EU Summit on Thursday. With that, the markets would probably be in for a lot of sideways movement until then unless we see any huge shifts in market sentiment.

Here’s my trade idea:

Short AUD/USD at 1.0300
SL at 1.0340,
PT1 at 1.0200,
PT2 to be determined

I’ll be risking 0.75% of my account on this trade and I’ll be moving my stop on the rest of my position to breakeven once my first target gets hit. I’ll keep the remaining half open and cross my fingers that this pair goes all the way down to parity or lower. Hey, those gaps still need to get filled!

What do you think of my trade idea? Will I catch another win with AUD/USD? I’d love to hear your thoughts so send ’em through any of these accounts:

@Happy_pip Twitter
Playing with Comdolls Facebook page
Happy Pip Comdoll Corners

Chips, dips, and give Happy Pip those pips!

Happy time

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