Joined some trading friends and decided to do an all-nighter London and NY session trade. We started our day scalping pairs around 2:00 a.m in the morning, all the way to the end of NY session. Trading together definitely made it more fun and interactive as time flew by. London is a session I want to trade normally, just have to prepared to sacrifice sleep.
BOJ surprised the market with some negative interest rate which gave price action some funk. GDP for U.S and Canda came out as well later on to help with volatility. Dollar was the ultimate king today with the euro, pound, and yen receiving the full wrath of bears. Here were my scalps for both sessions.
Finally seeing some consistent results. I will slowly increase my position sizes as my confidence as a trader grows. Slow and steady wins the race.
Today’s lack of Euro strength made me confident that there’s more dropping to come. USD/JPY caught my attention as it broke through supports, finally the Yen yielding it’s gains. I didn’t trade much except I’ll be holding onto my two Euro crosses: I’m short EUR/NZD and EUR/JPY. I basically spent the whole day waiting for it to drop. It was a calm Friday but I’m sure holding there’s bear strength on the Euro next week.
Check out the quadruple rejection on EUR/JPY as it gets lower and lower.
So after many days of changing up my trading strategy and holding ,and praying onto my positions, I finally minimized my triple digit losses to about -$50. I’ve learned my lesson. I can’t revert back to my old trading strategy, or a lack there of. I’m focused now, and will be much more cautious and careful.
Draghi spoke today which gave the EUR/USD some funky moves. It initially spiked up, then dropped hard then soon climbed again. I knew not to touch this pair, no matter how tempting it was. The rise in the Euro did surprise me from Draghi’s dovish demeanor. He’s speaking again tomorrow and there’s some European and British data coming out, which is why I won’t be holding onto any trades. I’ll sleep well tonight and be ready for the last trading day for the week.
Here’s some of the pips I caught today (shown in the last column). Didn’t even bother trading the EUR/USD.
I didn’t actively trade today however, it doesn’t mean it wasn’t a stressful day. Unfortunately my NZD/JPY got killed overnight when the CPI data for New Zealand came out bad, my stop loss got hit. I lost about $40 in that trade, but what frustrated me more was how price rebounded after NY session after hitting my SL. I even gave my stop loss some breathing room too… BS.
One other trade I was stressed about was my short GBP/AUD trade. My greed got to me and told me to hold it overnight instead of cashing it in for a small profit. Unfortunately, New Zealand’s weight affected the Australian dollar and brought it down as well. For London’s and NY’s session, the pound gained strength and my pair was going against me. However, I held and held and right toward the end of NY session, the Aussie gained strength. After Carney’s dovish rhetoric and Gold prices rising, I’ll be holding onto my shorts for sure.
See the sudden rebound on the GBP/AUD? The feeling of price going against you is one of the worst feelings in the world.
Bank of England’s Governor Carney spoke today with some bad news. He said, “now is not yet the time to raise interest rates” , and soon the pound fell down sharply. His concerns about global inflation and volatility makes him wary about following U.S’s step on a rate hike. This makes me wonder when our 2nd hike would be? I’m guessing not anytime soon.
So I was short GBP/AUD since Friday but failed to make a killer profit. Unfortunately I had a good run with shorting the pair. As my profits were slowly rolling in, I moved my stop loss to secure my money. Without much luck, on Sunday when China’s data released, the GBP had a sudden spike up, closed my positions, and then headed down again. Looks like the pair is on a bounce, however, I re placed my shorts this morning and I’ll hold. Another pair I’m in is a long NZD/JPY trade. As market volatility calms, I feel like the Yen will come down a bit and the pair hit a nice support.
There was a enormous market self off today in the global equities market, U.S included. Treasury also took a fall while oil broke the $30 level. Monday’s Martin Luther King’s day and investors feel wary of holding onto positions for a 3 day weekend during a volatile time. USD/JPY is still creating lows which means fear is still high. The dollar is still strong however, March’s rate hike seems very improbable. I have a feeling as we get closer to March, the dollar will continunally fall.
I’m currently trying to change up my strategy. Last year’s losses were horrible and my bad habits carried over to the new year. I might be looking to trade for a longer term and work up a better strategy along with improvements in money management. I’m determined to make this year my first profitable year. I’m currently in one trade that I’m holding over for the long weekend. It’s not a pair I usually trade, but it’s structure was too nice to miss out on.
Horizontal resistance with multiple failed attempts to break, along with a diagonal top channel resistance. This pair has a huge potential to drop hundreds of pips.