Welcome to my blog, where I record my Forex market analysis and my Forex trades, so you can follow along with the day-to-day of a trader. I only got 2 trades in this morning as I’m still getting in to the swing of things, but I liked my workflow. Keep reading to see those trades and their outcomes.
EUR/AUD – Short
I pulled the trigger in EUR/AUD after looking through all of my charts and not seeing anything I loved. I ended up clicking around, and found a tight entry/stop on the 3 min. chart. Unfortunately, though, I did it somewhat rushed and haphazardly. I didn’t really analyze the pair, and I didn’t ensure I was putting my entry at the break of support. I wanted to get in a trade, and I hadn’t seen anything else yet, so I think I panicked. I was in and out within a couple of minutes.. I need to not make that mistake!
EUR/GBP – Short
I also pulled the trigger in EUR/GBP. It was one of my favorites this morning, but when I initially looked at it, it was rallying. When I returned to the chart, it was pushing back down, and looking like it was ready to break a pretty strong key level. I took a little bit more time, made sure my entry was at the break of support, made sure my stop was high enough, and took the spread in to account.
I’m still in my EUR/AUD trade as I’m typing this, but I’m bearish on the Euro overall, so I’m not upset about anything I did here. Here’s to hoping this one works out!
I also just realized this is essentially a divergence play, since EUR and GBP tended to be correlated. I’m not sure how much that matters, but something I wanted to call out because I noticed it.
Price ended up pushing down to the support area that I noticed first thing this morning before the large rally that happened, but failed to break that level. From there, price slowly pushed up and eventually, hit my stop loss.
In hindsight, I guess this wasn’t the best trade in the world. I was a bit quick with the trigger here today, seeing the initial support break/return to the downside, but didn’t actually see a pattern that I liked. I could argue a bear rally, but it took out so many resistance areas on that rally that it should’ve disqualified this for the short-term trade — I should’ve waited for another base or a cleaner retest/rally.
The only solace I have here is that I’m taking such small position sizes because I’m just getting back in to the swing of things, that these losses aren’t that large. And, each trade is a step in the right direction, bad or good, win or lose. I need to get back in the habit of doing it every day, and this contributes to that. Going forward, I need to be more patient, and start with a lower time-frame when doing my initial analysis. Live and learn and keep swimming!
Thanks for reading! I know this isn’t the most exciting trading day there’s been, but like I said, I’m getting back into the swing of things. Let me know what you thought about these trades in the comments below, or if you made any better ones. Thanks for reading and stay tuned for more Forex trades and analysis!