Trading Day recap for 1/20/2011
Getting back into the market after a few days off is not easy.
Today is the perfect example of what happens when you trade against the trend and try to profit on the reversal. It is as dangerous as catching falling knifes.
I realized that my trading style is more along the lines of breakouts and trend following instead of trend reversing.
My first trade was in the $GBPUSD. It has been selling off all night on the London market. I saw some support forming around 1.5946. I tried to get long on the breakout but it turns out it was just a correction and I got stopped out of trade#1
My second trade was focused on the $USDJPY. Like the $GBPUSD a big moved happened over night. My thinking was that the move in the $USDJPY was over extended and a pull back was a strong possibility. I shorted the $USDJPY but again I got stopped out.
Finally on the $EURUSD. I tried to follow the trend and shorted it, but I think my entry was not optimal I got stopped out. My second trend was to trade the reversal. The EURUSD made a nice support around 1.3433. My long entry was good but I was stopped out because of the choppy movement in the $EURUSD.
“You got to know when to hold ‘em, know when to fold ‘em,
Know when to walk away and know when to run.
You never count your money when you’re sittin’ at the table.
There’ll be time enough for countin’ when the dealin’s done.”
- Kenny Rogers, The Gambler
The Key to survive in trading is to have enough capital to trade another day.
