Yesterday was a weak day for me. I day traded and scalped a few setups but it was not too profitable for me. Let's just say I made $90.
My psychology and mental mindset has been very clustered and all over the place because my day job has been very demanding as of late. I am a trader with several strategies in my playbook.
In times like these when I have less time to scalp the charts, I typically pivot to swing trading and position trading. This takes a lot of experience through trial and error.
The use of stop losses can be problematic and must be looked at differently than your typical scalp or intraday strategies.
It's funny to me because many traders in the retail space really focus on risk/reward ratios. This is good if you are a systematic trader. However, a systematic trader is no different than an algorithm. If you can control your risk, then you can make money. This is risk management.
For this trade, I am putting a large stop loss out because 0.7000 level is being respected. 0.68500 is an area that looks too cheap. If price passes that level then the dollar will be very strong and the trend will continue. Right now I believe that by looking at the weekly chart, you can see that this is clearly in an area of value. The daily chart shows that price is ascending from its low.
Price can consolidate here, move up or move down. I see this area of value and have paired it with fundamentals. I'd like to have a strong position and take advantage of this cheap price I can buy the Aussie.
Fundamentally, Australia has parliamentary elections today and China is going to recover from the lockdowns. Recovery means exports will increase. China is Austrailia's biggest trading partner.
Fundamentally you can take a position and see value in this trade by buying the Aussie and selling the US dollar pair. Taking longer trades like this can help you spend less time looking at the charts on every volatile move and instead think logically about why prices are moving.
Many retail traders think that institutional money care what retail traders do. Retail traders think that banks have traders on the other side of the trade. This is not true.
Businesses are buying and selling commodities or trading with partners globally. Banks are making these transactions. I constantly think about supply and demand and what is cheap and what is expensive historically. Forex is just a chart that shows money flow across the globe.
My mindset is always thinking about demand. Where is the demand coming from?
Stay humble and keep learning!
My psychology and mental mindset has been very clustered and all over the place because my day job has been very demanding as of late. I am a trader with several strategies in my playbook.
In times like these when I have less time to scalp the charts, I typically pivot to swing trading and position trading. This takes a lot of experience through trial and error.
The use of stop losses can be problematic and must be looked at differently than your typical scalp or intraday strategies.
It's funny to me because many traders in the retail space really focus on risk/reward ratios. This is good if you are a systematic trader. However, a systematic trader is no different than an algorithm. If you can control your risk, then you can make money. This is risk management.
For this trade, I am putting a large stop loss out because 0.7000 level is being respected. 0.68500 is an area that looks too cheap. If price passes that level then the dollar will be very strong and the trend will continue. Right now I believe that by looking at the weekly chart, you can see that this is clearly in an area of value. The daily chart shows that price is ascending from its low.
Price can consolidate here, move up or move down. I see this area of value and have paired it with fundamentals. I'd like to have a strong position and take advantage of this cheap price I can buy the Aussie.
Fundamentally, Australia has parliamentary elections today and China is going to recover from the lockdowns. Recovery means exports will increase. China is Austrailia's biggest trading partner.
Fundamentally you can take a position and see value in this trade by buying the Aussie and selling the US dollar pair. Taking longer trades like this can help you spend less time looking at the charts on every volatile move and instead think logically about why prices are moving.
Many retail traders think that institutional money care what retail traders do. Retail traders think that banks have traders on the other side of the trade. This is not true.
Businesses are buying and selling commodities or trading with partners globally. Banks are making these transactions. I constantly think about supply and demand and what is cheap and what is expensive historically. Forex is just a chart that shows money flow across the globe.
My mindset is always thinking about demand. Where is the demand coming from?
Stay humble and keep learning!