Well, today I made 4 trades, and as crazy as it sounds, I only traded on the G/U. Today's experiment was quite simple. Since the G/U formed a pretty evident consolidation range from yesterday on, I was able to draw a proper channel to decide on my trades.
So basically I sold when it was high, meaning the pair touches the higher limit of the channel and longed when the pair touches the lower limits. My first experiment didn't leave me very logical and my SL was -40pips and TP was 20pips only...Has anyone heard of a risk reward ration of 2:1?? Haha...
Anyway I learnt my lesson and my 2 other trades were strictly SL of -20pips and TP of about 40pips. Well, to cut the long story short, one ended up in full victory while the latter was stopped out, but I didn't lose anything since I had the chance to move my SL to breakeven.
The trade, last to be mentioned, but was the first one executed was a short in the middle of nowhere along the channel. Well, that decision was made because I believed there was still downside potential for the G/U, after all, the retracement of the overall rise since ages ago is minimal. But, well, I gave that up...believing I had no basis to believe the downtrend would continue.
Overall, I think I made neither gain nor loss, since I gained 40 pips off 1 trade and lost 20 off each of the other 2. The gain was more of the experience gained and getting to know that the channel actually works...albeit it requires time to form the highs and lows and establish its limits.
I'm wanted to test the method of playing with news (USD nonfarm employment change is coming out at 9.15pm Singapore time) Clarence mentioned (but definitely didn't encourage). But i think I had enough trades for the day.
So here's to each and every trader's dream - to live comfortably on trading.
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