In general, people are more emotional when they’re making or losing money. While the winner is complacent, the loser looks to make his/her money back.
I have only recently discovered that $CAD/JPY has a 90%-plus correlation to #Crude #Oil. Today, upon the poor jobs data and higher inflation in the U.S., I could have open a short $CAD/JPY position. The risk off sentiment was confirmed by $SPY, a good indicator of global risk sentiment.
But anyways, I re-entered $EUR/USD upon a breakdown of the 180-EMA. Being complacent, I didn’t move my protective stop to Break Even after an hour (instead 1.5 hrs). The pair refused to breakdown further and I was later stopped out at Break Even (not including commission). Should I have re-loaded my shorts upong a failed test of the 180-EMA? That’s hard to predict as the market is indecisive right now. It’s good to wait for clearer signal, especially as German PPI is due out tonight.
I also open a short $GBP/USD upon breakdown of the channel. I wasn’t watching this pair and only noticed it after someone posted it. Late to the party, was stopped out later for a loss of 18 bucks LOL.
*** $USD/CAD tends to move the most on U.S.economic releases *** I was a little late to this (party, which kicked off after the poor US economic data. I went long but waited until a clean break of a pivot point and loss some pips. I could’ve step in slowly with 1 lot at a time instead of wait for break of Pivot Levels. Being complacent, I placed my stop at BE 1.5 hours later instead of 1 hr. Complacency has been known to bust pit traders. Being late to the party, I was later stopped out at BE.
I decided to take an aggressive short on the $CAD/JPY (risky because way late), after #Crude fell 6%-plus and $SPY down 5%-plus already. The market has a tendency to move against the open and take a breath after such a move. Even after waiting on a Fib retracement to enter, I was stopped out.
Bottom line: 1) I’m taking too many trades per day and late to the party. Wait on clearer signal. Market tend to move against the open and take a breath. 2) Complacency is very dangerous. 3) It’s better to miss out on profit than to wish you weren’t in a trade. 4) Make sure to draw in key levels and follow your trading plan. 5) The intermediate trend, in the case of the $CAD/JPY it’s a counter-move, is more important than the Fibs level.