13-March-2008 , Sunny day, 23 degree Celsius. Melbourne Australia

It was a good day for Euro. But, I made a wrong choice. Well, at least for the trading result, it was not pleasant one. I was looking at EUR/JPY. The fact was, I neglected the strength of Yen, and at the same time missed the entry opportunity of EUR/USD. At least, I exited the market perfectly, (in other words, I was stopped out! 🙂 ) I guess, I watched too much TV. You know, I’m a big fan of Hong Kong soap dramas. 😆

Kinda crappy day for me. I was working crappy I guess. 🙂

This post is just a trading rambling. I wanna write down what’s going through my mind at the moment.

12-March-2008. Sunny day , 22 degree Celsius , Melbourne, Australia.

I have some trading problems. With result of February’s trading, I have achieved breakthrough of my equity and confidence. And, so far, I continue to be profitable in March.

I focus on the equity curve and focus on making new high of it. I am afraid of losing. Not even a dollar. I start to shorten my trading time frame. Trapped myself with small profit. Changing my stop level placement method (tighten my stops), and scratched some trades, chickened out some trades. I have totally ignored quality of each trade. With all these, I am still profitable. Crap, that’s the problem. This is not Gav’s style. This is a loser’s style. Do what you are good at, do what you believe in. Come back!

Forget about the new high of equity curve. Going back to your R-multiple graph. Work hard on making better trades, bigger Rs profit. Equity curve will follow when good trades are made.

OK, enough. I think I am awake now.

About this tool

Today is Labor day (Public Holiday) in Victoria, Australia. I have the luxury to follow through Asian market. I see some weakness in Aussie dollar, I went short AUD/JPY. But the market did not follow through after London market open. Anyway, end the day with +1.25 R. Not a great trade, but not so bad to start the week.

In case you have not already done so, go check out March 08 issue of Currency Trader Magazine.

There are two types of traders:

1. You see your trading setup presents perfectly, it ticks all your boxes(for example, price closed above moving average, x-day moving average crosses above Y-day moving average, or ascending triangle is formed, head-n-shoulder appears etc), and you start punching keyboard, submit your order. I call this Kangaroo trader.

2. You see your setup present perfectly. However you are trying to think more, looking for something that would possibly fail your setup (like a bit of fundamentals, market sentiments, and even your gut feeling etc), then you decide if going to punch the keyboard. I call this Koala trader.

I was the Kangaroo trader, but the longer I trade, I realize I am, in fact, a Koala. Note, these two types of traders are not better than each other. Being the Koala, as usual, I made mistakes, missing profitable trades. Sleep away the potential profit. Which type of trader are you?

I was looking at GBP/USD. To reveal some ‘secrets’ to you, my long setup presents now. But, my gut feeling tells me to stay away from the idea. I can’t really explain why do I feel that way. I might be very wrong and missing out another good run.

Here is the…… trend score! We are looking at a weak uptrend at the moment.

About this tool

And Here is the ………CHART!

[photopress:gbpusd09march2008daily.gif,full,1]

Secondly, do you have a feeling that market has already priced in the weak NFP result, and we had sold too much of USD? Maybe. You know I am not bullish about USD, for sure. But, I guess, we are looking at some rebound, pull back. What do you think? I have been into the ‘Priced-in’ factor recently. It happened to Aussie dollar as well. I might discuss more about this later.

Here is the……CHART! No, I am not looking at candlesticks pattern, so stop guessing how do I trade. 😆
[photopress:USD09March2008.jpg,full,1]

OK, I am heading out for some nice Asian food and grab my coffee. I will continue my Sunday charts scanning later.

Have a good day.

Firstly, I am not sure if I am going to trade in the coming week. We have interest rate statements from Australia, New Zealand, Canada, U.K , ECB, and Bernanke is going to say something, and to make it more interesting, U.S unemployment Rate is coming. I might just sit in front of my screen watching the market and watching some Japanese soap dramas. The week is probably too volatile for an old man like me to trade. :o:

Anyway, it is another Sunday night chart scanning session. GBPJPY jumps out. I admit that this is the pair that I traded the less, and with the least success in the past. 😆 Generally, I see the strength in YEN since last week. And , at the same time, I got a feeling that GBPUSD is hitting resistance soon. I am holding a negative view of GBPJPY. Well, as usual, I am always wrong 😀 . Let’s see how it works out.

Here is the ….. Trend Score. We have a strong downtrend grading towards GBPJPY.

About this tool

Here is the…….CHART!

[photopress:gbpjpy03march2008daily.gif,full,1]