Trading foreign currencies is a shredders game. Seduced we are by a wild, free market with few rules and a pitch that the market is open nearly all the time. And it’s true – sort of. I suppose for me, the seeds to fool around with this market were planted when I first began traveling abroad in the late 80’s. I filled my pockets with Irish Pounds and Italian Lira. Drinking Guinness in Dublin and pounding espresso in Milan took plenty. Of course, I was shredded by the moneychanger’s game each time I cashed in a travelers check. Paying the spread to my Forex Broker is no different.
Like most newcomers to the game I tried to trade all the time at first. Asian session, European session, and New York session – you name it. Monday and Friday were great days to lose my money since it never occurred to me that traders needed to warm up on Monday and were ready to go home early on Friday. I guess folks wait to make a move on Monday and take profits to buy martinis on Friday. Once I laid back and chose my sessions wisely, rarely taking trades on Monday and never on Friday afternoon (New York time), my FX trading has improved.
Unlike most people here in Germany, I had a day off to celebrate MLK day in the States today. This presented a good opportunity for me to watch the Asian close and European action knowing that the overlap with New York (best time for me to trade) would be sleepy. I saw the EURUSD bouncing between 1.4390 and 1.4340, so I took a trade when the pair bounced off the 1.4390 resistance area and gained 13 quick points on the sell side.
I enjoyed the bounce today while the EURUSD grapples with where to go next. The grind goes on.
No comments:
Post a Comment