Friday, 20 January 2012

Spotted a good opportunity for a short this evening;

My indicator diverged from the market, and a sharp move up in the NASDAQ at 18:23 was not correlated with the currency markets, suggesting a fake out move.

Went short at 2433.75;

Market sold off down to 2426, moved stop to 2429.75. The market has been trading in a tight range today so I kept a reasonably close stop, enough to get something out of the trade if hit without being too close to the price, to allow the possiblity of it running further. The market rallied back up, taking me out for a 4 point gain. Hindsight is wonderful folks, clearly the point to exit was around 2426 since the market had sold off down to that level and rallied from there three times previously today.

This was a live trade on my account. I have been taking quite a lot of trades on sim since the start of the year however I will not post any of those trades on my blog. (I'm using the sim to experiment with different types of trading, and if I see a good probability set up, I'll be trading it on my live account not the sim account). I was always very leery of trading on the sim however it's actually proving quite useful to practice on.

I'm still mulling over a new approach to use, it may well transpire that I use a variety of different approaches together, depending on the situation - that's what I'm thinking right now.

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