EURJPY has dropped over 90 pips but quite honestly it looks to me as though it wants to claw its way back. Just get your bruising tumble over with is what I want to say to it—actually I did mutter that. I’ve set my stop to make 40 pips profit (back above the purple uptrend line).
There are two, for me, frustrating trading situations. First is when you get no trade signals. While it’s true that you can’t lose money not trading, you can’t make money not trading either. Those days happen, though. Pairs rise; pairs fall. But if I can’t get a good signal (by my definition) then there’s no trade.
The second situation is this one—you believe the signals you’re getting, you buy or sell at what Jessie Livermore called the line of least resistance, but the pair wanders aimlessly: in profit by 50 to 100 pips then stops you out at breakeven or at 20 or 30 pips. You try again. You get the same result.
Whether or not I find this to and fro frustrating is irrelevant. The reason I do find it frustrating is because I’ve formed an expectation that this pair is going to act a certain way, in this case, go down. That’s why I sold. But the market doesn’t care about my expectations. That statement, especially when I say it aloud, is like a plunge into an icy pool. It wakes me up. What I need to do is attend to the market’s clues. Supply and demand are keeping it within a small range. Meanwhile, it’s storing up energy and the move, when it finally does arrive, will be stronger as a result.
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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