I may have jumped the gun. 30 pips against me in 15 minutes of my 50pip stop. Still working on that patience thing as you can tell. But I still like the trade, maybe the entry is wrong or my assessment could be wrong all together. I am up over 400 pips for the week, this 50 pips won't kill me.
Size matters - i.e money management and risk. Be sensible about what triggers and predictions, conditions are the foundations for trades. Position trading is much more difficult, and also need smaller size to offset the risk and larger/no stops.
I know quite a few traders are sidelined while all this is going on, I'm one of them from Wednesday after a couple of losses. I think if you really have to trade then leave the market plenty of room by reducing trade size and increasing stop, maybe average (scale) in as well. Risk remains the same and the trade has a better chance of being profitable without being stopped out first. Hopefully by early next week everything will be back to 'normal' (whatever that is!) Just my 2c.....guess I'll be needing change
I took 1/2 off the table at +29 points...will look to get the rest off soon. I was hoping for a larger move down and I won't be risking the NFP and bailout plan news.
EURUSD has been mainly sideways between 1.39 and 1.38 for more than 24 hours - that should be quite telling as for anyone to the conditions of the market prior to NFP and bailout bill. I would wait until later on Monday or Tuesday to digest the fallout - and only do quick scalps before a general understanding is reached. It is very clear that US economy and USD will be weakened in the months and years ahead - but the road there will always be full of surprises. Understanding risk is also about understanding market conditions and market systems - they cannot be ignored for trading any strategy or using any method. Scalping is of course a method of reducing the timeframe risks - where you cannot predict far into the future on detailed levels - especially with great tensions in the market conditions. Mastering various methods and strategies makes it easier to adapt to markets. Personally I scalp (tape reading, book-/price movements) better than medium time frame position trading (technical levels - mostly because I object to and reject that type of thinking [except the fact that trader positions are kept at levels, stops run etc] - hard to force myself thinking otherwise), but then again the overall trend is easier to get - i.e "the big picture".
I was taken out of the second 1/2 at -31pips, essentially putting me at breakeven. Even with the NFPs as bad as they were, the dollar rallied right through that resistance point...blah. Breakeven trade...almost (-2pips).