EURUSD – trade flipped to long

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.

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4 thoughts on “EURUSD – trade flipped to long

  1. bahamasboy

    This is one of the changes I made a few months back and have seen improvement in my trading. Trading with a mind free of external garbage allows you jump in or out of a trade based solely on your trading rules rather than your expectation due to the news or emotional attachment to a particular data number.

    Your comment in the last post about the risk/reward mentality was spot.

    All the best.

    B

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  2. David Wallace - FX Systems Trader

    I’ve just got to say that I loved the part about stopping reading the FX news sites when things are getting tough. You have your system or strategy and your job is to follow it. If reading news is sowing doubts and making your thoughts take control of your mind and clouding your awareness then don’t read it.

    There is a reason why a robot following a trader’s mechanical system can usually do a better job than the trader who designed the system – psychology.

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