Today is the 1st Monday after the Brexit - which led to leave. Last Friday was a wild market and unfortunately, i twas too wild for me to trade. I have been burned many times so my instinct was to stay flat, and therefore i did not really trade with the election result. Although i still managed to make $800 profit out of 300 pips and very small lot, but comparing to traders i know who some of them actually double their accounts in one day, i'm really just a beginner!
Anyway, we opened the market Sunday EST with gap down, and once again, i do not see any opportunity to trade because the gap itself is 200 pips, we're almost at 1985 historical low of 1.32. There is no fundamental or sentimental reason for me to enter at this bottom.
I stayed up to watch news, and read article, Goldman Sachs analysis predicted the cable to go as low as 1.32 and ended the year at 1.34 while a lot of banks predicted it to go as low as 1.20-1.25
Nevertheless, with 200 pips gap down and no more force to push cable lower, i have decided to scalp some money at 1.32 handle.
The method is easier, i would wait for the pair to make fresh new low at 1.32 and buy with 10 pips sl and profit, then whenever it dropped another 10 pips, i’ll buy and aim for another 10 pips.
So that was what i did, for 14 times in total.
I also enter at 1.3250 before to grab 10 pips.
At the end, i made some money.
However, I should have just entered at 1.32 and then wait for 20-30 pips profit, and then at 1.3190 and wait for another 20-30 pips
and finally at 1.3150 and wait for another 30 pips.
I’d made the exact same amount or even more with less trades.
However, that will require me to have more patience to wait….and PATIENCE is what i always lack of in my life!!!
So the lesson is really to have enough patience in the market, wait for the market to give you opportunities to trade instead of force trading.
Hope I’ll learn and do better next time.