Taking Stock

Good evening risk takers! Another grinding day and another post to go with it. Lets kick it off with a recap of yesterday's trade.

So here's what happened. The trade initially got me into a reasonable 30 pips profit, but then ran out of steam almost immediately. It put one of those rather ugly, ball tearing retracements that you hate to be on the wrong side of. It formed and hourly close above the short term resistance level around 1.066. Given this, I decided to exit and take the 25 pip loss rather than the full 50 I was risking given the recent market volatility.

Price action ranged throughout the asian session. About an hour ago, it looked like another neat setup had formed on the one hour, so I took a second bite at the cherry. Result? Another face ripping rally on the back of no news. AWWWEESSOOOMMEEE ... not. This took me out with a 21 pip loss which leaves me down 46 pips for the week.

The setup was valid, and it was a nice risk to reward ratio. In the end, that's the way it is with the market when it doesn't work out; This is where prudent risk management is your saving grace.

The interim has flipped to the upside. A retest of 1.0665 area made yield a short term long entry. Medium term, still looking for the bear run continuation. May take a break for the next day or so and see how things pan out.

Good luck again to all those who will be braving the FX seas in the American session!