As you probably read on my twitter account, I decided to enter a short on the EUR/USD last night. Given the fact that it was expected that the Federal Reserve was going to keep interest rates low at 0 to 0.25% to stimulate the economy and the USD was still strengthening I thought it was a good idea to look into selling this pair short, although in the beginning the pair seemed very wobbly.
Along with some technical analysis to find a good entry point, this decision was mainly a fundamental trade. However I still came across the same problem everytime I do a trade.
I'm most of the time able to find a good entry point, but my exit strategy is not quite at the level where I want it to be. When to bail out and take profits is always the question in any trade setup. I thought this trade went pretty well considering the fact I walked off this morning with a 50+ profit. Before hand I setup my trading plan, thinking about how much I want to risk on this trade (Stop Loss), and a target point. Below a chart on what I exactly did. The green arrow represent the entry and exit points. (Click on the chart for a full version).
Also, I'm beginning to trade more with the AO (Awesome Oscillator, for more information on what the AO is and how to use it click here) as you can see as well on the chart. While this oscillator is not perfect (which technical indicator/oscillator is?) it's easy to use and and easy to read. In the next few days I'm going to try to perfect this system. So far it seems to work pretty good.