Day Trade – Stop And Reverse

I realize now – that any kind of “day-to-day” documentation of my trade activity will be near impossible…..let alone extremely  time-consuming and more than “just a little tedious”. I imagine I’ll have to pullback here, and continue with the outline of general concepts and background  fundamentals as – the day-to-day stuff is just  too fast n furious to blog in real-time.

For what it’s worth – I’ve held on to my “short USD” trades through today – and will plan to add to them when the turn presents itself. Looking at as many charts as I can  – this looks more like a “cleansing / rinse” if anything else – and I would need to see a lot more  ( as this move has primarily been in the EUR – with the USD barely gaining an inch on most) before considering switching gears and getting long.

HOWEVER – I did pull a complete “stop and reverse” in the short JPY pairs as of last night – to eliminate loss in the trades – and immediately switch to a profitable position. (please Google it.) This is not for the faint of heart, and not commonly practiced – but in this case did the trick. Net result being break even on JPY trades and still in the red ( for now) on the few dollars out there – short USD.

If this is any example of what you have to look forward to over the coming year ( which I feel it most certainly is ) you’ll need to find a way to survive. Holding “old turkey” is for the birds – and trading this is gonna be a task and a half.

The “chop” up here at the highs will do everything it can to empty accounts, as the day to day action will continue to confuse and confound.

Are we going higher? Is this the plunge? Should I get short? Are you buying here? ……………………Welcome to 2013.


3 Responses

  1. Anthony February 21, 2013 / 5:34 pm

    Hi FK

    Nice timing on that short dollar trade. I went long equities myself.


    • Forex Kong February 21, 2013 / 5:52 pm

      I’m at odds with it here Anthony – my initial position being so small, I was considering waiting another day to continue adding.

      Regardless – I don’t see this as “the time to panic” as markets should correct and continue for another thrust upward. BUT – this is starting to show the characteristics of “topping” and thusly – I am keeping things small and safe.

      Things are going to get difficult here soon, as the “chop” looks to continue so…let’s keep on our toes.

      • Anthony February 21, 2013 / 7:21 pm

        I couldn’t agree more, i have halved my normal risk on this trade. Keep up the great work.

Leave a Reply