Tuesday, December 16, 2014

16 Dec 2014: daytrade #14

Today's actually been pretty busy on the USDJPY. I took around 14 trades and made a small profit. My broker will be happy. A few of those losses stemmed from ultra-tight entries and stop losses. 

This was a notable trade I took recently, an hour before New York opens. Bears have been in total control throughout the day, and I was looking for shorting opportunities. Price had stopped moving after the break of 116.000 and I wondered what would happen next.

I theorised that price would retrace back from 115.560 to 116.000, which was also the 50% retracement level of the most recent downswing. Then I thought, if I believed price was going to retrace back up to 116.000, why not go long until then?

I went long at 115.688 and exited at 115.834 when I was that price was struggling to make a new high on the M1 chart. My profit was a little over 1R. 

Trading counter-trend is always dangerous, but if you have a price forecast, it's your job as a trader to trade it. 

(click to enlarge)

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