The SAS Forex Trader: Monday Digest

Hello and welcome to today’s adventures in the Forex Jungle.

Other than the disaster that has befallen Japan at the end of last week, there didn’t appear to be any direct news due out to seemingly affect the GBPUSD pair.

Looking at the charts this morning, the indicators were giving me a sell signal, so I set up an order to open @ 1.6050 with a stop in place at 1.6085. I was looking for a scalp of 35 pips, which looked achievable, so a profit limit was set @ 1.6015. The trade was triggered around 08:00 quite soon after being set and was initially looking good. Unfortunately, I looked back into the platform just over an hour or so later, only to find that the price had reversed and hit my stop loss. As I was wondering whether I should have put a higher stop in, the climb continued to reach what would have been my 50 pip stop point, so I was thankful I hadn’t done so.

One thing I have picked up on – the Daily Pivot on Monday is quite ambiguous. This morning it came out as being @ 1.6076, and for the most part overnight, the pair traded below that line, barely breaking above it. It was that fact that helped me form my decision to go short.

However, given that the trading period it is based on is so short (21:00 Sunday – Midnight), I decided to revisit Friday’s Daily Pivot which was 1.6047, and the pair where trading above that line overnight. I may still have decided to enter a short trade, but set at a lower figure and possibly not have the trade trigger, or to at least enable me to get out of the trade for a smaller loss once the other signals started to turn. That has given me food for thought, and next Monday, as well as looking for Monday’s daily pivot, I’ll call up Friday’s too and look at that before I make a decision.

That’s all there is for today, ending on a sour note with a 35 pip loss, but you can’t win them all. The trading account now stands at £536.00, so it’s still a good way above its late January start point of £100.00. Stay happy, and remember to keep a little thought for those less fortunate than us.