15 December 2009 – Difficult December

Gosh  – December is only 2 weeks old and its proving to be the month that is testing my patience and discipline.

This is not a trending month.

This is a month where you have to do the smash and grab.

A quick in and out for the most part with the VERY occasional runner it seems.

I have lost count of the number of times this month I have looked at the charts and thought what the heck is going on here???

Today has been a much better day with 2 nice and easy consolidation breakouts. EURUSD and EURGBP

EURGBP

I was initially long on the EURGBP. But as you can see it faked me into the long postion then promptly went back into the range.

My initial thinking was that it would be a long trade here as the MACD confirmed it. Also UK CPI was due at 0930 hrs and in my head I was thinking that there was no way this was going to be good for sterling. When it broke long I thought Yay I’m right!! – thinking you are right is not a good thing when you are a trader as the market often has other ideas, as it did today.

So I get taken into the trade long and stopped out for -10 when it breaks out of the other side of the consolidation.

Next thought….FLIP IT!!!!!

It is a consolidation and there is no point in waiting for the market to agree with me that it should go long – I have no control over the market. I only have control over myself.

The market says it’s breaking out the otherside, well then I go short -WICKED

10 pip stop loss on the other side of the consolidation scale out 50% at +20 and let the rest run to +28.

Thank goodness for that after a really testing week on these markets.

EURUSD

Another short trade – no fake out this time. It’s a straight breakout

20 pip stop this time. Entry at 1.4636. First target the big round number at 1.4600 which it made with ease (phew that made a change from the shenanigans of the last few days)

Next target is to see how she runs. Lovely trailing stop took me down to 1.4544 – just shy of 100 pips.

Tell you what – it sounds easy but it wasn’t. You just had to be there and experience the last few days to know how tough this life can be sometimes.

Who Dares Wins Rodders….Who Dare Wins..