Post Mortem on NZD.USD Failed Trade

As usual, I like to analyzed my failed trades. These are great case studies, and one can learn a lot from them.

Before I enter any new trades, I would try to see if there are any "problem areas" that could potentially derail my trades. I obviously did not find any on the 4 hr chart.

When I zoomed down to hourly chart however, I saw that the 6300 level is an important level in this timeframe. Before the trade was taken, this area had been tested 3 times - making this a pretty important area.

And so, it's not really a surprise to see my position got bounced off again (for the 4th time!) from the 6300 area.

In the end, a lower TF S&R, if it has confluence with a round number, is certainly capable to be a show-stopper!

This was indeed, an interesting observation. I will take note of this in my future trades.

Another Loss

Yep, I lost this trade! This trade was based on Daily PPZ bounce.

It happens. I'll need to do some analysis on this one - perhaps I was trading into some traffic or somethin'....

And yes, it's time to move on to another trade.

New trade

New trade for this week. Currently in drawdown...boo....hoo....!

4th of July

When I was a student in the US back in the late eighties, I used to look forward to the fireworks display everytime on the eve of the US Independance Day.

I had fond memories during my 5 1/2 years stay there, in Akron, Ohio. One of the great things about the American people is that they keep coming up with cool new technologies. America is such a conducive environment that really foster this spirit of innovativeness. They're not afraid to lose - they would get up and do it again.

In a way, trading is quite similar. In order to gain, you need to risk a bit of your capital. There's no such thing as a "surefire way to make money" in this business.

Because there's always risk involved in this business, it is therefore, imperative that one learns how to manage the risk properly, before you start thinking about the potential profits.

Managing risk is part of money management. Do this well, and the profits will take care of itself.

Another Road Kill!

I've decided to kill my EUR.USD Long trade (at BE+1, of course!), as there was clearly a lack of momentum.

Which is really not totally unexepected, due to the US having a 3 day weekend (4th of July fell on Friday). It means that there won't be many players, resulting in low volatility.

Sometimes, we do need to make slight changes in our trading plan, if the trade did not turn out to be as expected. This was one such case.

Still, I'm quite pleased that I did not lose any money on this trade - which is always a good thing!

Another ride on the Euro Dollar train!

New trade on the EUR.USD, this time from Long position.

Batting up the window

I've decided to close my CHF.JPY trade for a small profit. Normally I would have held on, but NFP was just 30 minutes away.

Knowing the impact that NFP is capable of on the currency market, I feel that it's better to take what the market is offering now.

As they say, nobody goes broke taking profit! Great way to start the ball rolling in July!