Results, 14 Sept 2005
Well, maybe to prove a point to myself, maybe to show the validity of my previous When to Trade article, or maybe cause I am just plain stupid :) (no comments please), I decided to test my system on the opening of the various markets. The result? ... disaster! ... sharp movements taking out my stop losses, combine that with some legitimate trades that were in place and in profit, being whipsawed out with the release of some news in the US and there is no other way to describe today other than one huge jumble of rubbish trades.
If it wasn't for some stop loss placements, it could have been even worse. I will let my results above speak for themselves in terms of what happened overall. Have a look at them, think about what are some obvious problems with that picture (apart from all the red figures of course!). Ill get back to that at the end of this, but some other observations.
Firstly, don't trade the market opening if you are not a pro at reading the charts or interpreting the news. Second, learn to check the upcoming news announcements, especially in the US which has such a drastic effect on prices, and adjust your stop losses, or close the current trades accordingly. What was a disasterous day could have been made so much less painful if I was aware of the release of the US economical figures and Gold/Oil prices, where I was holding around +35 pips at the time and got it chewed up in a matter of minutes.
Below is yesterdays 15M chart of the EUR/USD. You can clearly see the sharp moves, in this case in the opposite direction of the short term trend, at the opening of each market. Then in the early stages of the US session a second sharp move on the release of various economical news reports.
So did you think about what was wrong with what is is my trade results? The most obvious, overtrading! With the big movements I was trying to chase, at times I would place a trade straight after one got stepped out by the move in the opposite direction, chasing my tail so to speak, where really I should have stepped back and re-evaluated. The other thing is there are just way too many currency pairs in that list, bopping around between the different pairs made tracking them awfully hard and switch the brain into chaos mode. Stick with 1 or 2 pairs to start with, and build from there if there really is the urge. Personally I will be trading the EUR/USD and the EUR/JPY during the Asian session this morning.
So all in all a crapo day (I think that is the technical term for it), one where I held so many winning positions, only to have them stepped out with dramatic reversals. Lastly, to help us all, here are two places that can help us be aware of news releases:
If anyone has others, please comment below and let us know. Tomorrow I will be writing an article on moving averages at the request of peterb, who has to answer many a question on that topic so I thought I would help him out.
Best of luck!
Today's result: -90 pips | Overall: -89 pips
If it wasn't for some stop loss placements, it could have been even worse. I will let my results above speak for themselves in terms of what happened overall. Have a look at them, think about what are some obvious problems with that picture (apart from all the red figures of course!). Ill get back to that at the end of this, but some other observations.Firstly, don't trade the market opening if you are not a pro at reading the charts or interpreting the news. Second, learn to check the upcoming news announcements, especially in the US which has such a drastic effect on prices, and adjust your stop losses, or close the current trades accordingly. What was a disasterous day could have been made so much less painful if I was aware of the release of the US economical figures and Gold/Oil prices, where I was holding around +35 pips at the time and got it chewed up in a matter of minutes.
Below is yesterdays 15M chart of the EUR/USD. You can clearly see the sharp moves, in this case in the opposite direction of the short term trend, at the opening of each market. Then in the early stages of the US session a second sharp move on the release of various economical news reports.
So did you think about what was wrong with what is is my trade results? The most obvious, overtrading! With the big movements I was trying to chase, at times I would place a trade straight after one got stepped out by the move in the opposite direction, chasing my tail so to speak, where really I should have stepped back and re-evaluated. The other thing is there are just way too many currency pairs in that list, bopping around between the different pairs made tracking them awfully hard and switch the brain into chaos mode. Stick with 1 or 2 pairs to start with, and build from there if there really is the urge. Personally I will be trading the EUR/USD and the EUR/JPY during the Asian session this morning.
So all in all a crapo day (I think that is the technical term for it), one where I held so many winning positions, only to have them stepped out with dramatic reversals. Lastly, to help us all, here are two places that can help us be aware of news releases:
If anyone has others, please comment below and let us know. Tomorrow I will be writing an article on moving averages at the request of peterb, who has to answer many a question on that topic so I thought I would help him out.
Best of luck!
Today's result: -90 pips | Overall: -89 pips
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on Thursday, September 15, 2005 at 7:46:00 AM.
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