Forex Pre-News Sentiment Trade EUR/USD 21/06/2011
Today were just going to do a quick review of today’s trades from the forex room. The first trade of the day was a confirmation entry long on the GBP/USD. This trade went it our favor around 15 pips, however there was quite a large retracement which came near to our break even and we got out at that break even point. If you look at the price action today in the forex market it was rather tough to get any trades.
I probably sound like a broken record by now but when you see the market run coming into your trading session it will make trading much more difficult. Again this is what we saw today unfortunately As with anything in the FX market, things come and go. Having said that things will change and the price action during the NY session WILL return to normal, it’s just a matter of time.
Before we left the training room today I called a pre-news sentiment trade short on the EUR/USD. This position was only a quarter position because I wanted to use a 40 pip stop. By using the quarter position with a 40 pip stop this allowed us to keep only a 1% risk on this trade. The last recent trade update we finished up the EUR/JPY trade that ended up +200….we counted this trade as only +100 pips though, because it was half the position size we normally use. The same is true for this trade….it is officially counted as -20 pips because it was half the size of a normal position.
This trade brings our total down to +130 pips for the month. The most important part of trading is your mental attitude going into your trading session. It’s very easy to let the price action we have been seeing in the NY session discourage you because it does make it very difficult to trade. However this is exactly when you need to 100% stick to the forex trading strategy you know works.
The confirmation entry has given us profit 5 out of 6 months this year to date. Even though it has turned profit so consistently it will still have losses within each trading month as every fx trading strategy does. The worst thing a trader can do is take a loss, and then change their forex trading system. I think we have all been there. You take a loss or two, then change your day trading strategy only to see the next trade you should have taken recover the losses and then some. This is a classic newbie forex trader mistake. That being said, we cannot change when and how the market runs, but we can dictate how we trade it. By sticking to your trading strategy through times of few trades, or even some losses you then give yourself a fair chance to turn a profit and not make that classic rookie mistake.
Hopefully we will see some better price action during the NY session through the end of the week….we will have to wait and see! Trading isn’t for the weak….it’s a continual daily grind, day in and day out. If you cannot mentally handle the ups and downs of forex trading it’s best to simply find another profession or get a better forex education🙂 Either way we will continue to stick to the proven confirmation entry strategy, and hopefully add to our +130 pip profit we have for the month. See you all tomorrow!