Sweet Spot

Well my winning groove is still firmly in place with a bumper day in an exciting day in the markets. My health is still a bit below par and I decided to finish an hour early as I was entirely happy with my gains and I thought it would be prudent to finish a good note and allow me to concentrate on tomorrow.

Last night’s FOMC statement wasn’t anything spectacular and my net position was 10 pips profit. I hedged EURJPY and after my short got taken out for -25 pips I moved my long to breakeven so my worst result would of been -25 pips. EJ quickly spiked up and I moved my stop to +35 on my long. I was hoping for EJ to climb further but it quickly hit my stop and I was out for +10. EJ then proceeded to tumble way down and spiked low, so I was pleased I had moved my stop to a reasonable position. Spikes in both directions are a news trader worst nightmare and thankfully I got out unscathed.

The main focus today was all on the BoE statement as economists were predicting a further 50 billion of QE. Merve opted for 25 billion and this caused GU to rise very sharply. This time I decided to set targets instead of closing my trades manually as I thought it was entirely possible that GU could spike quickly without manually being able to close. I set 1.6605 as my target for a long and it was hit very quickly. This left me with a +75 gain on the news, a very pleasing result.

TUFXP was deathly quiet today with only 2 or 3 potential setups that never met their entries, and so far it’s been a quiet week overall. These sort of weeks can happen and I’m glad of having other strategies that make up my portfolio as I fear if just trading TUFXP I’d most certainly get trigger happy! 9-10 hrs a day without a single trade is a patience test to the full.

One little thing I do want to touch on is how complicated some people make trading. I was browsing the GBPUSD thread on FF here, and I was literally blown away and how complex and complicated some people’s charts were. One guy had so many trendlines, support levels and the whole kitchen sink on his chart that I could barely see his candles. I read something that really struck home the other day. I’ll try and paraphrase it; if a trader has a setup that is so complicated that no one else has, it’s highly likely it will fail. Forex is like any market, it has a herd mentality. Certain things work because so many people believe in them. If you’re the only person trading an obscure strategy, it makes it a lot tougher to succeed. Trading is not complicated, you really do not need to make it so, keep things clean and simple. It really made sense to me and whilst I’m still very new to Forex, I know for sure I’ll always keep things simple.

NFP tomorrow…bring it on! And thankyou to everyone for their kind comments, it’s nice to have some regular readers.

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