Today was Veterans Day which was celebrated by US, Canada and France – thus there was significantly less market activity, particularly in the afternoon session.
I ended up with a bearish 123 setup on the DAX, a bearish rounding top setup on Oil and a bullish EMA setup on USDJPY. The first was a losing trade where I had placed the stop at a bad level. Price reversed pretty much at my stop level and then quickly fell directly into the trade’s target. Lesson learned – was good to analyse the trade with one of my colleagues. The second setup was a winner – though price pretty much hit my target – went 10-15 pips further and then bounced right back up – thus it seemed that the target setting had been bang on – just in front of a low just touched earlier in the session. The USDJPY trade didn’t work out. So another loser. All in all then – 1 winner and 2 losers – down 0.8R for the day (much better than the loss of 3.6R on Monday). I will post some of the charts tomorrow.
Finished up the trade documentation for yesterday. And spent a couple of hours in the afternoon talking about risk management and alternative trading platforms with a colleague.
All in all, the day was a bit tough – the lack of sleep was clearly evident. The main reason for not being able to sleep was that I kept on churning through yesterday’s DAX, Oil and Cable charts in my head – over and over.
In terms of EMA (Exponential Moving Average) trades – I got to be careful not to lose the faith with these – especially now that I have invested a lot of time and effort in the analysis for them. I find it hard to digest that one trader can trade it and make really great returns with them (at least dozens of R per month), shows it to me, and I just can’t do it.