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Thursday 7 January 2010

2010-01-07 Morning session commentary

*Actually none of those trades was taken off clear and nice setup.

9:17 UJ buy @92.75
9:37 EJ buy @133.29
9:37 EU buy @1.4382
10:30 1/2EU sell @1.4371

today started with spike on JPY crosses. Market was quite messy, however on divergence between JPY pairs and USD pairs I decided to long UJ. Big mistake was to take first dip after spike, usually second is deeper, and that's what happened this time. I should prevent myself from trading at all so early after spike, but I didn't and loss on UJ was a price of it.

What was surprising, EU after plunge started to regain it's position very quickly, therefore I decided to enter this move [what I did announced on FF thread earlier]. In spite of lack of proper setup I opened EJ position as well as UJ was looking for me as it was going to appreciate, so I could make sure I won't miss the move.
As you can see on a chart at the moment of taking that second trade GU was forming higher bottom, so when I saw deep plunge on GU I decided to close EU position. I kept EJ trade open and managed to close half at +20 pips profit, accordingly to trading method, however on second half I managed to save just 6 pips.

Last trade - short EU I opened when waiting for reversal setup to unwind what didn't happened. I closed trade with + 6 and +2 pips

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