19 June 2013
Further to yesterday’s post, EURUSD broke through 1.34 overnight and my system has flipped to long from 1.3402. After a 100 pip loss on being stopped out, this long also looks vulnerable as all other pairs seem to be poised to show dollar strength. The DXY is sitting on strong support. My previous two trades that got stopped out tell me that my stops were not well-chosen. Choosing stops is one area of my system that involves judgement, is not strictly rule-based.
Since Monday of this week, I have not looked at ANY forex or trade related site. I normally follow a few blogs for economic news and discussions, event-calendar and general news and opinion. Since Monday I have not opened any of these sites and I feel liberated! All I have open is the trading platform and charts. I look at the charts every 3-4 hours and a bit more often during London and NY sessions. Reading too much news and opinion actually clutters the mind, sows doubt and undermines decision-making. Everything we need to know about a market can be seen in the charts. That is the starting point of technical analysis. Actually experiencing it is very refreshing. I shall try to cultivate this as a habit.