Tuesday, December 29, 2009

Day 2 of the trading project

DAY 2;

This morning when I logged in to my trading station the research I did yesterday proved to be pretty valuable! As mentioned yesterday I researched four different pairs, the EUR/USD, the USD/CAD, the GBP/USD and the USD/JPY. All of them went in the direction as forecasted! Unfortunately none of them I actually entered a position, making me feel I had missed the boat! All four boats actually left the harbor without me! And if I was only an hour earlier I think I could have made it! All the volatility seemed to have happened exactly and hour before I logged on. However I could not stand to be left behind and grab some of the profit cake and went with the old 'the trend is your friend' analogy and entered a trade position on the EUR/USD and went short, which at the moment I still currently am, making an average of 15 pips. I entered at 1.4342 with a SL @ 1.44 which is pretty high, but I figured I have enough leverage to cover that.

Above a snapshot from my trading station, the green arrow indicating the entry of my trade. Looking back a pretty stupid entry but I figured in the fundamental analysis and no technicals whatsoever. The trend line was going down and considering the all famous expression, "the trend is your friend", I think this was the only option to ride the trend line. I was right for a few hours gaining as much as 30+ pips!! Still holding on strong although it pulled back to half that value, I still think the EUR/USD is on it's way down due to a strengthening US dollar.

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