Day 326: Noobie mistake

Profit: -$40.66 $1,309.18

The Aussie goes crashing, oil goes flying, and dollar in limbo after a neutral FOMC statement. The bad CPI of -0.2% vs 0.3% for Australia sent the AUD/USD to a major downward spiral. The dollar was also stuck in a limbo-like situation due to some tricky wording. We didn’t get any hawkish clues for a June rate hike, however, the Feds are no longer troubled by global weakness. Although a June hike is less likely, there should be a hike in the upcoming year.

I made a major beginner mistake today and still feel like an idiot for acting so impulsive. My first mistake was trading so soon after a major news release. I longed the dollar perhaps 1-2 minutes after the FOMC statement was released. It’s very unlikly for  me to pull the trigger without letting the market digest the news for at least 5 minutes… Long story short, I saw how the algos reacted to the statement and I quickly saw that the FOMC release was more hawkish then dovish. I pulled the trigger on a short GBP/USD and EUR/USD which was followed by a dollar pullback. My stop loss was instantly hit while the dollar continued to move higher few moments later. I got burned by the markets for trading so impulsive. This will never happen again, let’s move on.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s