Monday, March 31, 2008

EURUSD


The green line is where I have set my buy order, at the bottom of the consolidation, with a tight stop shown as the dotted grey line. Target set for 200 pips. If it triggers and goes higher, my plan is to monitor it each night looking for signs of weakness. My trading plan has always been that once I am in, the first objective is to move the stop to break even when I see a higher high form on a reasonable time frame, most likely 4H in this case. The target is set only to get hit on a large spike, from an event such as news. When the momentum slows I will place the target closer to catch all I can while the stop will also move tighter. I look for momentum to slow from the STOCH, prices coming off the top of the bands, or volatility increases, making lower lows. I use the volatility to have the target hit. If the climb is steady, I like that and I stay in. The trick is to catch the steady climbers.



Note that none of these post are recommendations. I am entering these trades in the blog to capture this moment. I'll come back to each post and do an "UPDATE" as the trade close and add my thoughts. I want to track my progress for these daily time frame "swing" trades, or hopefully "trend" trades.

UPDATE:
The Good: Position size set, Stop placed, Target placed, trade planned before placing trade.
The Bad: Took a loss, a small loss.
The Ugly: Totally forgot about the first friday of the month. The US released the non payroll farm report. I was reading about trading the news just days before this trade and noted that I have to commit this news release date to memory. I think it will stick in memory now!

Disclaimer

The information presented on this site is for educational and entertainment purposes only. This site contains no suggestions or instructions that you must follow, do your own research and due diligence before committing your cash to the markets. Your on your own.