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)





4 comments:

  1. Jimmy,

    What an "exotic" currency pair to trade!?

    How many currency pairs you monitor?

    ReplyDelete
    Replies
    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 :(

      Delete
    2. OK.

      Glad you figured it out by yourself.

      Saved me a poke ;)

      Delete
    3. its an expensive lesson
      will share later

      Delete