EURO analysis post my Trade of last week

7th January 2013 - EURUSD

I thought I’d post my trade of last week and also talk about what has happened over the last couple of days with the Euro market. It’s important to review looking back to help formulate future plans when trading.. it is something which one needs to do all the time to ensure that you’re on top of your trading. Anyway, my initial plan was to hold onto the trade for as long as possible and bring the stop loss down to the high of each day. This would then help lock in profits and give enough room for the market to work it’s way out.

Unfortunately, I was unable to do this as the market dropped so sharply and when markets move like this, the chance of a pullback is greatly increased. I closed for 120 pips but was annoyed with myself as I didn’t follow the plan. Anyway, looking at what has happened since, the market moved 50 pips lower and then seemed to have found a base at 13000 and formed a bullish pin. If I had followed my trading plan, I would have been stopped out 13090 today for a total of 80 pips.

I said initially that I would look at shorting again after the pullback but the last couple of candles are bullish and I don’t feel comfortable shorting looking at the current price action.

Right now I am in two minds as to where the market is going and in these situations… it’s best to wait and see what happens before entering any more trades.

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Category: Forex trading, Trading