I felt that I had to put this chart which shows that the GBPJPY did indeed reach the target I mentioned at 15645 and then promptly fell (note the stochastic move below 80)… this should have been my trade if I had followed the rules… it would have been a lovely 95 pips in the bag… this chart will remind me of the missed opportunity and the reason why one needs to stick to the gameplan…
As I write, the GBPJPY price is at 15620.. it bounced perfectly off 15645…
I have been quite careful of late and this has benefitted my trades.. I have found that the best trades are those which are ‘boring’. When I say boring I mean that they do not give me the excitement which I experienced before… I just put them on and wait patiently. Sometimes I am not patient and end up closing them too early.
Anyway, one of the terms I have heard before is ‘bottom pickers get smelly fingers’ referring to those who try and time bottom of markets and this also corresponds to those that try to pick tops.
I made this mistake today, the USDCHF looked as though it had run out of bull steam and had hit an area that looked like a region of resistance. The price action had failed to get past this area and I put on a short trade at 1.1850. If you look at the price action before, you can clearly see that the market is trending upwards and not downwards as I had traded.. I was trying to play the countertrend. Luckily for me this market doesn’t move as volatile as the others and I closed at a -30 pip loss.
I am kicking myself for this trade as I should have known better.. it annoys me that I made this trade considering the years trying to get out of the habit of trying to pick tops and bottoms.
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