Saturday, June 6, 2009

When not to take the trade on Friday

I have been burned more times than I care to recall on Fridays trend. So here I have two different trades. One which I took and another which I passed on. 

The GJ trade was high percentage for a few reasons. First, It was in the middle of the range. Second, it had a halthy pullback from the highs buy was still well above the lows. It was also early in the session so no chance of a runaway breakout contra my signal.

Eu was not a trade because it had already broken the low of the previous session as well as for the week. In my experience, the likelyhood of price returning into the weekly price channel on a Firday after a large new event is extremely low probability. I don't have exact stats on such a hunch but speaking directly from negative account balances, this is the ideal setup to AVOID.

Walked away with almost 200 pips on GJ--first trade was in the London session which I failed to post because of time constraints. 

A good week overall. Hope things continue and my head stays in a modest place.

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