Thursday, March 3, 2016

Sideline: Short EURZAR

On Monday 22/02/16 morning, I saw that there's a bearish reversal on EURZAR. There's also a nice mini Head and shoulder chart pattern formation which looks like a good shorting opportunity. The only thing that kept me away from trading this is that it is a counter trend trade ie it is against the trend. I wanted to monitor this forex and see how it develop. Yes, it went down for 1 day and looks promising. However, on the second day, there's a bullish reversal which cause it to move up. So it doesnt pay to trade against the trend as you are exposed to higher risk and smaller reward.

Well, I am glad I didnt trade this and give it a miss.

Trading Plan:
1. Trade with the trend
2. Trade when there is a price action reversal with the trend continuation
3. Place SL on previous high/low candle (Limit my loss)
4. No TP. Let market decide when to exit (Let my profit run)


  1. Jimmy,

    What an "exotic" currency pair to trade!?

    How many currency pairs you monitor?

    1. i monitor all pairs including exotic, index and commodities like gold

      i regretted. not going to trade exotic pairs. i got 3 bad trades coming up :(

    2. OK.

      Glad you figured it out by yourself.

      Saved me a poke ;)

    3. its an expensive lesson
      will share later