Don't trade dead markets

Yesterday, I was able to avoid one of my common mistakes - trading slow markets. However today, I fell into the trap and got caught. Fortunately, it only cost me very little. Let's see what happened.

I managed to quickly make 16 pips by shorting E/J and G/J in the first 90 minutes of London session. The trades were not textbook though and I'm not going to post them here. After a while of the price failing to fall I decided to go long for some reason. This was a really bad decision as the price was already caught in the range with very low volumes being traded. This mistake cost me 3 hours of waiting to get out of the positions, which I finally managed right before US retail sales hit the wires. I faded the news, but got in a bit too early so made nothing on this.

Like I wrote last week, news respect S/R levels more often than not, you just need to have the courage to execute the trade properly. E/J hit strong resistance upon release and only went south from there.



Later on, G/U did what it does best - go ballistic. Hourly resistance was at 1.5193 and I was going to short at 5200, possible slightly higher if it breaks. Well, miss sterling broke by 20 pips and then crashed. I missed this trade though, because I was sleeping.



And finally, A/U had a beautiful bounce too. I don't trade Aussie too much though, so I missed out on this one too.



Total performance for this week very positive.

-Tyler