After flying back from the US over the weekend I was back in the central London office at 7am this morning. It turned out to be a good day trading. There was an absence of Tier-1 news, other than the BOE rate announcement, which as expected, was a non-event and had no real impact on the markets.
Cable pushed up 200 pips in the session and I was able to get in and out several times – see the chart below. The chart for GBPNZD (which I didn’t trade looked very similar). Other than the GBP strength the markets (including equities) were pretty flat today – thus Sterling was where one needed to be if wanting to trade momentum.
What things did I do well in this session?
- I came out of losing trades quickly – I was able to do that because in both cases price went a little in my favor first allowing me to tighten the stop. Thus although I had two losing trades on the DAX, the net loss was a mere 0.7R.
- I allowed myself to be more ambitious on the long Cable trades – going for bigger targets than I usually do.
- I read the charts well – combing trend/momentum (both bullish) as shown by 1H and 15M timeframes, with fundamentals (bullish sentiment following the UK election), key levels (round numbers being the 1.54, 1.55 and 1.56 handles) as well as pivot lines (P and R1) as well as prior support & resistance (dotted lines), technical patterns and entering at good levels (relative to EMA’s)
- I was patient – my first trade came after being in the office for three and a half hours.
How can I replicate this again in future sessions?
- Look for instruments that are trending strongly – STAM matrix!
- Identify the key levels in advance (i.e. preparation!!)
- Pay attention to the EMA’s
My final day in the States was quite terrible. On Thu 7th May I took six trades and ended up with 5 full losers thus losing 5R for the day. That really hit me in the gut. I will make some more comments about this in a seperate blog post in the near future. Here are the charts for EURUSD and DAX from that fateful day!