It's been a month since I last traded (from my last post on 20 Nov 08). Looking at the charts, I saw that I have many missed opportunities to make some money on the EUR/USD. However, those were just missed oportunities ... better than lost monies on hasty trades (chasing the markets).
On 18 Dec, I finally made my trade to short the EUR. The EUR shot to a high of 1.4719 (surpassing my own prediction of 1.4300 - 1.4350. I then went down to the 30min charts and saw that it was doing a BKO downward move. Based on what I have learnt from the PowerWave course, I shorted the EUR and did my projection to take profit at 1.3950 ( which happened to be a 32.8% retracement on the daily chart of a move from 1.2388 to 1.4719). THe market revealed itself according to what I have anticipated.
Summary of the EUR short trades (2 in total):
Trade #1:
Entry: 1.4471
Initial Stop loss: 1.4502
Trade closed at 1.4441 (when the EUR retraced to hit my trailing stop loss).
Profit: +30 pips.
Trade #2: When the EUR went down again after hitting my trailing stop loss, I looked for re-entry to short the EUR.
Entry: 1.4379
Initial Stop loss: 1.4409
Take profit target: 1.3950
Trade closed at 1.3950 on 19 Dec 08.
Profit: +429 pips.
Trade #2 was closed when the EUR dropped downwards and hit my target price.
What a trade!!! PowerWave rocks.
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