Wednesday, May 7, 2008

Dollar Rebounds & Price Continuation Wednesday

European Session
No. of signal recommendations: 2
End-of-session results: USD/CAD (+35 pips) & GBP/JPY (-5 pips)
Maximum potential: 80 pips

Yesterday, I felt quite disappointed because I slightly misplaced my EUR/USD and USD/CHF stops by a margin of 5 - 10 pips before the dollar quickly rebounded. Those positions were unfairly stopped out. Hence, I reentered my positions with tight stops around those levels and I set my new 100-pip targets.

Both positions hit their targets in less than 12 hours overnight and as a result, I gained back what I lost plus 20 pips more. After the exits, both prices continued to surge ahead. The earlier losing trades could have become zero-risk trade with the original 100-pip targets. I had a few similar experience before and this time round, I was able to understand and follow the twist and turn of the market action.

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