Sunny Monday

Good morning to you all! Has your weekend been as good as mine?

Well, I’m not going to dilly dally, let me take you straight into today’s events on the Forex market. To start with, if you were thinking you were going to read more of the same from Friday, the news is actually, somewhat better – but only in terms of the positive result. I finished this morning sessions positive at +3 pips.

But this was another case of luck as opposed to skill.

I logged in this morning and whilst I was setting up the charts, it was apparent that there was a large red candle on the GPB/USD and it appeared as though it was continuing down. You will be happy to know that I remained composed, and finished my set up before settling down to trade. I officially started my session at 8.40am. I watched from this point until 8.54am which was when I entered into a buy trade. Let me try and explain why. What I noticed during the period I was watching is that the GBP/USD was reluctant to move down with the same momentum that the EUR/USD had when moving down and USD/CHF had when moving up. In fact the GPB/USD seemed to edge up more than down. So, to me, I was convinced that the GBP/USD had done its downward stint and was now ready to move back up. And, the GBP/USD seemed to move up and down between a range of around 4 to 5 pips. I watched the GBP/USD on its next move down and as soon as it stalled and minutely nudged upwards, I entered the buy trade. The trade didn’t go positive straight away, it was negative by 1 or 2 pips for while, went positive momentarily by 1 pip and at one point it was down -4 pips. But after 8 minutes, the trade eventually went positive and I exited for a +3 pip trade.

Now, as far as the taught criteria was concerned, I should not have entered into this trade – though correlation between the currencies was present, there was no momentum, the trade didn’t go positive straight away and if the GBP/USD turned down with momentum, this would have been a negative trade by the time I exited or a bigger negative than I was at during some of the stages of the open trade. So a risky trade today.

Overall during my 22 minute trading session today, I’m thankful that I finished positive for the day. But am I where I need to be as far as being a successful trader is concerned? Far from it.

Enjoy the rest of the day, who knows, I might pop back in here to say hello. Also, I will put this down in the blog now, so that any temptation to trade again today is suppressed – I will not be trading again until tomorrow morning!