Good morning folks! I hope you all had an amazing weekend!
I’m starting to take the weekend off from backtesting – Feels quite good to have a break and be entirely fresh when I come back to the market on Monday.
Anyway, let’s update you with my trade.
Trade Update
As you probably remember I was short on GBP/CAD – I had one position left – my 4hour scale in.
I did a mistake when placing the trade, I placed a profit target at the following area of demand (that wasn’t fresh) and where the correction began. That’s not part of my trading plan. It was a mismagement.
The fact I mismanaged the trade bothers me I’ll be honest. I had entirely forgotten about my TP.
So far it played out for me at 1.681 for 5.81:1 which is great. However I did commit a mistake.
The stop should’ve been at 1.698 if I had been able to trail it like I should (and hence have a smaller profit)
Anyway, enough talk, let’s dive into my watch
FX Watchlist
AUD/USD
Aussie Dollar is the only pair I have on watch for today.
The area of supply dates back to April 2018. However, it’s not because it’s old that it’s no longer valid.
On the weekly chart we can observe that there was a lot of fighting between the bulls and the bears for six weeks before hand. The week after our area of supply was created there was a very clear drop in the price.
That makes me believe we could see some action in this area.
Of course, it will have to give me a clear script entry for me to take a short on it.
Daily Book
Over the weekend I finished reading The Unknown Market Wizards, I thought it was quite good, was rather interesting to hear the stories of individuals trading their own personal money instead of people managing large funds. I am closer to them than of Stanley Druckenmiller let’s put it that way 🙂
Would recommend it if you’re looking for a trading book, it’s not the best out there – it may not teach you anything, but, it will reinforce the fact that you need to create a strategy that fits you, that the edge is in the application of your own strategy and the importance of keeping data.
On another note, Patrick J made me listen to the episode 208 of Chat With Traders, I thought it was really good, would recommend here’s the link:
Bullish on Coffee - a Forex Trader Blog 