Forex

hello rahul, i am going long from @202.12 what do u think pls

I have gone long half position at 202.10. I am calling a bottom. Will look to build down to 200.
Couldn't resist!

ADDED 2.02 L
....and 200.9L, 200.30

I meant the entry price. Basically here's the story. I was wanting to get long after the good CPI, but was impatient and entered at too high of a price. It started to retrace strongly and I freaked out and closed with a small loss. Then it bounced around a ton and I did get long at a lower price after it was clearer the market liked it. Then It moved up strongly again on the Bear Stearns bailout, and actually my FXCM client stopped receiving price updates. When I finally got it going again after a few long minutes the market had reversed and I closed out on a bounce. Finally decided to get short as it plunged to 203, held through the bounce sure this was Armageddon, but as the Dow climbed back to 90 freaked out and closed again with a loss. If I had a better entry price, I might have held on and just let it run.

Another lesson to plan carefully and let the market come to you... more often than not it will. For me, my entry price has significant psychological impact on my trading. I'm much more willing to let a trade ride if I have some profit cushion and I'm still confident in it... underwater and I have a much more difficult time controlling my emotions.

Do you mean that your stop loss is below 200? And if the price continues to decline, you'll add to your long? Where is your Uncle Point? What if the sky decides to fall and you're stuck with this long position for several wks?
(trying to figure out your trading style to help me with my stops)
p.s.- I see divergence on geppy and DOW for Monday gains. I think I'll follow your lead to see how it plays out on my demo...please keep us posted on this trade, Thanks

Good explanation....I know exactly where you're coming from...I've done this too many times to count and am working on this also.

Dear Samuel,

My logic for the short was breaking of 100 on USDJPY coupled with inability of US indices to stay above significant support levels. Technically, the 400+ DOW rally seems more of the classic 're-touch' than a bounce as of now. Also, for a recession, it is said that indices loose about 30% value before bottoming out. 30% on 14000 is ~10000 for DOW and we are still away from that level. Thus, chances of a downside move seem better IMHO. Given that it is Friday, you can expect a follow-through reaction from Asia on Monday. Also, the latest BearSterns rescue seems ineffective to hold markets up (taking away the comfort of Fed intervention).

Of course, at the end, the market goes where it wants! All we can do is react accordingly...

hmm thanx a lot

Dear saphin,

I hear you! The only way for me to stay away from those scalps was to stay away from the terminal...now a days, I seem to have better control over my urges, but every now and then, I do find myself in scalps...my approach has been to trade real small (1/10th position) to satisfy the urge, but to protect my capital...

rahul and stephen you both seem to be taking opposing sides to todays' market. Obviously, you both are successful at trading but have very different strategies and am trying to understand both. Pls keep us posted...
Looking at the wkly, we are at the 50 % fibo from the Sept 2000 low.

Hello Rahul,look like support level @ 200 broke what do you think pls