Over the past week there has been an increase in reversals i gather the main reason would be because the top 5 major crosses are all in a channel of some sort that has been forming for weeks now, and they're all on the precipice of breaking or have already broken and back-tracked.
June is going to be a very good month, barring any natural disaster ie acts of god but i have no idea how early the spoils will come. EURUSD will either continue crashing here or reverse upwards to test the last high and maybe even surpass it before potentially crashing a final time. We may see 1.18 or we may not but that really isn't that important right now.
What is important is for traders to be honest with themselves, i like to think that the market is always doing 1 of 3 things, and obviously these 3 things would apply differently to different people. In my eyes market is either trending, ranging or being entirely random.
I know what i am good at & its very important for a trader to know their strengths and their weaknesses, it doesn't mean your stupid if trader 1 is trading making money and trader 2 is trading the same market and loosing money, because 9 times out of 10 i can guarantee trader 1 has defined their "market of expertise"
A lot of people that are new to the industry believe a trader trades everything all the time, which is not true sometimes the "best" trade is not trading at all. Which bring me back to why i got out of this particular trade, the market stopped making sense to me and when it does this i know something has changed and i am no longer trading a market that i am an expert at.
Sure losses happen but when you honestly don't know what language the market is speaking you need to do the smart thing, the brilliant thing in-fact and conserve capital.
I gained about 10% in the first 6 days of the month and since then ive given back about 6% which sucks but isn't a train crash because all i have to do is wait out the market and carry on, there isn't an exact science to it i just need the market to start speaking English again, where as in the past i would've continued vigorously striking out and my equity would be in tatters right now.
Anyway the moral of the story is know your strengths and even more importantly KNOW YOUR WEAKNESSES.