Most of the pairs are correcting so far today. It doesn’t mean that more lows aren’t coming in such pairs as the Euro, pound, Ozzie, etc. However, no pair falls straight down and rallies are common in downtrends just as reactions are common in uptrends. The point is this—decide on the level you’re going to short and wait for it to happen. If the market doesn’t get there, you can always short on a break of support.
I’m doubtful we’ll see declines to the extent we saw them last week—a rough count of the profits I took last week alone add up to over 3,100 pips—a similar amount of pips to what I made in the entire month of January. http://forexreflections.blogspot.com/2010/02/january-trade-resultsup-3116-pips.html
However, you don’t know what the market is going to do. What you do know is that it's important to carefully select entries and keep your stops tight.
© Dianne Fecteau, 2010. 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.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.