Well, I didn’t!! In the past I have done so and have won loads and have lost loads also. If you spreadbet then you find that you can’t get in and out as quick as you like and you can be stuck in a losing position.

Anyway, as mentioned yesterday, we were told by our trading mentor not to trade today unless it’s past 7.30pm (GMT) and that’s only if you really have to and see something. Well, the market has move strongly to the downside and now my indicators are all indicating that the market is oversold. However, for those that have studied indicators, what the indicators say isn’t always what determines what the markets do. If anything, the markets will do the opposite and run your stops before you can even think about it.

Anyway, I was seriously contemplating a short with this market, if you look at the daily chart (top left) you will see that the price action was right at the top end of the channel.. stochastics is also looking high and into overbought territory.

In addition, both the 5 min and 15 mins charts had stochastics in the overbought territory.. surely it was a short?

For those that like a gamble and traded it, you would have made a killing but as I’ve not really done too well  trading the FOMC in the past, I think its probably best to leave it for the day! The worst thing to think is to think that if you had traded it you would have made money… the next time you make this analysis you will find that it goes against you and the market takes all your money. I understand the attraction though, the market has almost made 150 prices in about 30 mins!! That’s a massive $1875 on 1 contract!!

However, I need to prove myself and be careful not to lose money after my disaster first day live trading yesterday!

Today, I had a little time at work and saw some opportunity and made two trades on the Forex market.

The first was a short of the AUDUSD at 0.8890 early this morning. The reason for the trade, a double top formation in the 15 mins with negative divergence showing in the MACD chart.

Then I shorted the EURUSD chart at 1.4708.. once again, another double top pattern. The entry for this one wasn’t as good as the AUDUSD trade but still, I was happy with it.

I had set up my stops for both and then went about my merry way at work. A chap from another office arrived today to see me and I spent the whole day with him in meetings, taking him to lunch, showing him around etc. I briefly checked my charts just before lunch and seeing that things were going well, I adjust the stoplosses so that they were at entry.. in the worst case scenario, at least I wouldn’t lose any money.

Anyway, a few more hours went by, the colleague was due to fly back tonight so I got him a cab and said my good byes. Then I went back to check my trades to fit that the stops on both had hit!!! Arrrgh!

Frustrating but luckily I had moved the stops to entry so I had lost nothing. However, looking back at the charts, the AUDUSD chart had got to as low as 0.8830 and the EURUSD had go to 1.4650 before reversing. If I had got out at these levels, then I would have made 60 and 58 pips!! Darn, frustrating!! That’s the problem with trading at work, you can’t watch the markets and get out as they turn or look dodgy!

Anyway, the FOMC is upon us… best not to do anything for the time being until after it!

AUDUSD short (click to enlarge)

EURUSD short (click to enlarge)