The EUR was a tempting trade after the German ZEW economic release. The other majors appeared too difficult to trade. The EUR although tempting did not meet our Reward to Risk ratio of 3:1 so we passed on the trade. As a trader, we must have rules and abide by them. If a high probability trade setup presents itself and meets our reward to risk minimum, we evaluate the trade. If the setup is less clear and does not meet our reward to risk ratio minimum, we look for a trade elsewhere or we come back tomorrow. We do not take 50-50 trades. We take high probability setups that are clear to see and meet our criteria. We passed on trading this setup.
The week is young.
Back tomorrow…
