2:58 PM [ki] today I was down at least 60 pips in 5 positions at about the same time coming into the US session at about 5am to 6 am. I was basicall short the USD in most of my position except for one where I was short EURGBP.
2:59 PM [ki] Positions Long against USD were: L EURUSD, AUDUSD, GBPUSD. Was playing the gap.
3:04 PM [ki] When the US market opened the account recovered to break even and at 11:30 - 12:30 I was profitable by 30% of daily target. However I didn't take profit and watched it go neagative again where I was down in the account by 10% which is almost 50% of tgt
3:05 PM [ki] Currently I am up again by 30% of daily target. Waiting for position to develop as planned when I entered it last night. It's not easy waiting for position to develop under these circumstance
3:07 PM [ki] Especially after sitting through a drawdown of more than 30% of your account.
4:47 PM [ki] Need emotional break for a bit. Had 5 pos running since yest. eve. Closed my Short $EURGBP position for +27 pips profit, Closed my Long GBPUSD position for +75 pips profit. Currently have 3 positions still opened: 2 Long EURUSD and 1 Long AUDUSD.
My riding these big draw down lately has helped me to realize what some of these great traders go through while they wait for their positions to develop. Especially those guys in "The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History" by Gregory Zuckerman, whose positions moved against them while the subprime rally continued and they were almost wiped out or their investors pulling funds because the account is down just before or when the trade starts developing. Search Amazon.com for The Greatest Trade Ever: The Behind-the-Scenes Story of How John Paulson Defied Wall Street and Made Financial History
I believe the AUD position should rally when Austalian market open as it should follow the US market as the GS case seen as a non issue on the current market or economy. Last night when I entered the trade I thought the European market would have seen it that way but they didn't plus they have the issue of the vulcano ash that is crimpling their economy as far as air travels. Still learning little nuances of the Forex Market. Assian session, European session, US session all interpret the US news different. Seems the reaction to the news is exagerated as they try to figure out how the US market will react to it. Going into the US session if the interpretations and reactions are the same the move builds on it. If not the correction begins. I shall be testing on this assumption/observation. I say assumption also because sometimes the market can make you feel like is what you observe really what's going on.
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