This is the first trade that I have posted in a week and a half. I haven’t had many good trades lately. I will make some pips and also give some back. The market doesn’t seem to have a clear direction at the moment so it’s not a time to take large positions or to get greedy.
Staying disciplined can keep one out of a lot of losing trades. When I have been stopped out recently, it hasn’t been from lack of discipline. It’s been because a large order has gone through and quickly reversed the market temporarily. I got knocked out of one trade in about a minute. If I saw the same set up again, I would take the trade, but sometimes the market goes against us.
The AUDUSD had a couple of 120+ pip moves last week within a 15 minute time frame. When I see a stop and reverse like that, if I’m not in the pair, I won’t go near it until it settles down. There are many reasons that could cause a move like that, but it reinforces the necessity of stop losses at the time of entry.
Today an entry long was taken in the GBPUSD risking 20 pips for a potential 129 pips to our daily target at 1.2444. Price climbed higher and broke above its Asian session high… where we locked in our profit as price tends to retest this level, as it did in advance of the U.S. session today.
I’m trying not to have a strong bias for or against the USD currently -preferring to take it day by day. Currently it seems to trade in the opposite direction to the equity markets except on Fridays. With most people sufficiently spooked by the implications of the coronavirus and its damage, fewer traders are willing to hold over the weekend than usual.
Stay healthy and good luck with your trading!
