After two months out with negative market conditions and a long trip to South America, I finally decided to try things out once again. I was skeptical of going with short term trades as I have not touched them in a while but this is definitely my preference for trading so I decided to start practicing once again.
My only two possible trades were short the euro or short the kiwi. The kiwi I was looking for a drop to 0.7125 from last week when it was trading at around 0.7210 but I did not get a fill with my limit order.
This time around, I saw price action that looked promising going into London and placed a limit order at 0.7190 looking for 0.7125 once again.
I woke up at 6am and the trade was up 3 pips or so. Not being mentally tough, I was already thinking of lowering my stop and what not. At around 7am, or so, the trade was in the red for 15 pips at one point and I did not know what to do. I was already questioning my ability to place trades, especially short term. I've noticed I've gotten better at seeing where price is going in the daily, but so far had not executed properly.
Anyway, I decided to ignore my worst instincts and let the trade develop. It went positive again and when I was at 5 pips or so thought about closing, then thought about lowering stop and what not. I held and was thinking of changing my take profit as it was approaching 9am or there abouts.
I missed a spike to 0.7155 and was regretting it as the price was again at around 0.7180.
At this point, I changed my take profit to 0.7155 and thought I'd manage it from 10-11am. Unfortunately, (or fortunately) some things came up and could not, and the trade closed at 35 plus pips, at 0.7155. The trade went to 0.7135 but reversed after that.
Overall, I'm glad I avoided the trap of lowering stops or taking profits of a few pips. I held the the killzones and time of day theories and did better because of that.
The negatives: I had not checked Forex Factory prior to trading, so that could have been a factor in my trade, and also taking profit right away. One caveat though, was that it was already around 10:20am when I changed the stop so it was a profit taking hour anyway.
I still think NZD is going to 0.7125 so I might look for another opportunity to get in.
The charts:
The Monthly chart shows 0.7125 as being the mean threshold of the three consecutive down candles.
Daily shows equal lows below 0.7125
What I was seeing at midnight or there abouts.
What happened during the day with NZDUSD.
