Monday, May 2, 2016

Trades over the weekend

I had some great success last week catching USD/JPY plunge with news from the Bank of Japan. I caught the downtrend which lasted for a while. I thought the trend might continue over into next week.

However I was wrong.

The downtrend soon ended after a little hesitation and I was stopped out. I still managed to get some profit from this event, but I did have higher earnings at some point.

What I did right:

I waited a while to see how the next 4 hour candle would turn out, and then see how the 2nd candle open. Read a news article predicting more drop in the price.

What I did wrong:
Did not realize the steam ran out after the weekend, price reversed on me.

Lesson:
The weekend can reset trading thinking.

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