Sunday, May 24, 2009

Forget tech, go fundamental! for now that is...

In my previous post I wrote that I specialize (or at least try to) in the EUR/USD currency pair. On this particular Sunday I had a pretty good trading plan set up, one of those plans that gives you confidence, guess what I was wrong and right at the same time, huh? Yes, let me explain... The EUR has been hovering around $ 1.40 pretty much this whole time during my analysis that started late last week. My opinion it signaled a overbought Euro but I somehow had a feeling that fellow investors thought they were looking towards an uptrend in the market. When trading started this Sunday for me (I'm PST) indeed the buyers flew in driving the Euro even higher then it already was. I waited, only a few minutes after opening, until I thought the peak was reached and put a sell order in somewhere around 1.4030, unfortunately my broker was unable to fulfill the order in time at the price I specified and it was pending. Being fairly new in Forex I undid the order being afraid it was going to be executed at a price I didn't want. (the platform I use seemed to freeze up), but here's what happened. Had I done so I would've collected around 40 pips. Of course the whole infamous would've, should've, could've comes in to play here, but the fact of the matter is, if things were done accordingly my trading plan wasn't such a bad one... which makes me proud to say I created a plan that was well thought out although outside factors, such as my slow broker, prevented it from proper execution.. The bottom line, no matter how well a trading plan is, it can never ever work 100%!

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