Phew!

by Liam 00:17 0 comments

Three trades today, i lost 2.86% of my account on two EU sells at the start of the day and happily made it back with an Oil long in the evening. €2.50 profit for the day, just enough for my favourite bottle of beer!

EUR/USD 5min

The EU sells were avoidable and should have been such. We have 4 bounces on the low of the FOMC news bar from thursday. After the third bounce I decided the stars were aligning and it was time to short. I didn't notice the rising bottoms on the chart and sold into this. The trades went as followed; I entered on the first No demand/upthrust type bar and got taken in immediately on the next bar. We were stalling at the orange fib just below this (highest 15min volume from the day before) and this was when I noticed the rising bottoms. We bounced and I closed out on the high of the bar marked NBP - No buying pressure. For a small loss. I noticed this had lowering volume and had closed in the middle. I set another short and down it went. I told myself i'd get out once I recoup the losses from the first one. I didn't. Those profits ticked on screen, plus a little more and I told myself I may as well hold it. I closed at number 4 for a further loss. My initial reaction to the rising bottoms should've stuck. I think these two trades were governed by my emotions. Need to get a check list together.

Now on to the Oil long;

Oil 5min

Fibs are from the 15min charts. I had a few more on during the day but just left the important ones on for this chart. We see a MASSIVE wide spread down at A with accompanying high volume on the 5min chart. After some further testing on spreads a little too wide for my liking. We then get another wide spread back up to where we'd come from, the next few bars closed up and I was taking this as absorption of the down move. We tested into the 50% of B and I took this long. With the earlier losses on EU I decided to only risk half what I normally would and I kept my stop tight, on the low of the bar. Set my profit target at a number that would recoup the earlier EU losses. Just over a 2:1 win loss ratio.

Not long after entering the trade I had to leave to go to job no.2. I was delighted to get in, remote log into my computer back home and see it tick to my profit target.

Wow, long post today. Hope you all kept up!

Cheers,

Liam