Archive for December, 2009

Hi all,

When I do day trading I am using tight stops. For example on EUR/USD I use 25 points stop loss.

Now have a look on today 30 minutes graph. It is very choppy and it goes from one side to another. That’s why I stayed a way. Otherwise I will be stopped out 5-6 times today and maybe hit my 50 points target twice. So I would be 50 points down…

If you use tight stop loss stay a way from choppy market! and if you use tight stops don’t even think to trade oil. It can jump 100 points in no time to each direction.

For weeks Shares magazine forex section  recommends to go against the flow and but the $. Each week their bottom line is buy the $ at 1.43 but the $ at 1.45 and so on. But the Euro had some other ideas and went all the way up to 1.51 but still shares magazine recommended against the Euro.

I don’t feel in a position that I need to catch the turning point. My idea is let it change and then jump on the new trend. But I do feel that something has been changed for the last 3 days.

Since Friday the Euro has lost a lot of ground to the green bucks and although the weekly chart is still positive the daily is already changed direction. Add to that a correction in the market and it seems that the direction is down for the Euro. It is too early to call but if the weekly chart will indicate that the trend has changed I am on!