Both of my trades got stopped out overnight for 11% capital gains. I’m cultivating a mechanical response (system) to capture at least 80% of a trend. My entry on $EUR/USD was at a failed test of the lower sequence of tops. This was the ideal trade as profit was seen immediately. An early entry on a reversal should be followed up with in the direction of the reversal for at least two days afterwards if it confirms the intermediate trend. I was placing my protective stop at the 61.8% Fibonacci retracement on the last wave. One of the counter-moves stopped me out and $EUR/USD continue to fall, teasing at the 180-EMA. I’m currently waiting for a test of that key level to buy or short-sale. Since I had reasons to follow up with this position for at least two days, I should’ve placed my protective stop at the 61.8% retracement of the second-to-last wave.
Likewise, I should have taken more risk than the amateurs and placed my protective stop at the 61.8% of the second-to-last wave. Key things to watch out for: make sure there is no upcoming economic releases before opening new positions. I now have to *manually* draw in Pivot Points. While it is important to use tight stops in this volatile environment, once the intermediate trend is confirmed after an early entry on the reversal, one should look to relax the stops.