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.

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.