Trading Day Recap for 01/06/2011
This morning I woke up a bit late. I was experimenting with a new iPhone alarm app and needless to say that waking up to classical music isn’t as effective as waking up to an annoying buzzing sound.
Looking at the charts it looked like I missed a big move in the GBP/USD. The EUR/USD chart looked choppy and USD/JPY seemed to be stuck in a range.
I was looking at shorting the pound because of the relative strength of the US dollar.
I was early on my first trade and my stop was triggered. However after a few minutes, a Pound drifted a little lower testing the support previously established.
Secondly, with the momentum on the US dollar, I saw an opportunity in being long the USD/JPY because a new resistance was broken.
So far I’m 2 and 1. Maybe I can push the momentum and Voila! The US dollar made new highs. I short it quickly. I was a very fast trade. I think it lasted less than one minute.
I know looking at the chart, one might ask why I did not stay in the trade longer and let the winners run? I guess an answer to that is that I am a momentum trader and do better in catching momentum plays. Once my risk is covered, the rest is gravy.
