Trading is a lot like camping.You pick a spot. You set up a tent. And you might even build a fire.
Really, all you want to do is to enjoy the great outdoors.
But.....sometimes there are bugs. Sometimes you can't find a loo. And sometimes it even rains. Sounds familiar?
Thing is, once you are out there (i.e. once you have put on your trade) - you just have to try to enjoy yourself.
I had a strange, haphazard trading day on Monday. I am too embarrassed to even talk about it. Eventually I will.
Mindful of how I was swept into a wave of random trading yesterday, I decided to go back to basics and camp out on $EURUSD.
So my job was just to wait until the stochastics dropped to below 20 for an oversold and cross back up again.
As usual I noticed that I had missed an entry. How come these moves always happen when I am asleep.
Note to self: Just look at how the EURUSD and AUDUSD behaves in Asian Session.
So I waited and waited.
And waited.
Of course while I was waiting, the MA lines crosses and there was a resistance bounce. Look at 1 on the chart above. Naughty, naughty, the trading devil got the better of me. I took the move for a quick 17pips (10 candles). Again, I set myself up for a 2:1 risk reward but took quick exit on a small doji.
Note to self: It is looking like SMA200 breaks can give very fast 15 to 30pips in the direction of the break
Oops, back to the job. At point (2) in the chart, it's time to make an entry on the counter-trend Bossilator trade. So I pulled the trigger at 3830 because I was waiting for the stochastics cross. Very tight 15pip stop. 13 candles later, it hit the breakeven point or close to it. Right after that a 7-pip candle down. Whoops, my trading nerve center on 1Minute charts is not equipped to handle that.
I pull the trigger to exit. (+8pips)
This time, I didn't random trade but waited to see if the trade would reload.
Eventually, it went on to 3854, would have been 24pips if I hadn't exited. But I could also have been stopped out by the trading platform. But then it came back down to those Moving Averages. So in total it would have been a wait of 57minutes for 14pips of profit. 57 candles is a lifetime for 1Minute chart trader.
Hey - at least I banked in 25pips for the day. That was enough work for the morning and it was time to start my day.
In retrospect, it was a good decision, EURUSD kept on falling for almost 200pips to 3620 (!!!). Yup, after it fell out of the MAs again, EURUSD continued it's trend for nearly 10hours (about 570 candles).
Wow, that would have been a Bossilator of nearly 2000.
I wonder if anybody else was camping out there that day.....and how much did they catch?