I had a good exit from the AUD/USD FOREX play from yesterday. I did not exactly make the 50 pips, but was quite close. I got out of the FOREX trade at 0.9287 which gave me a gain of 39 pips. I had gone long on the AUD/USD FOREX trade at 0.9248 yesterday. I did not want to risk going into the 8:30 AM ET hour when all the numbers (durable goods, unemployment claims, etc.) were going to come in. In most cases I like to avoid playing the “announcements” market. It is very tricky and there are no well-defined rules that one can follow.
I am quite satisfied with this particular trade. It is not just because I ended with a gain. It is because I followed all the rules that I have set for myself. The first rule is to follow the trend. As they say, the “trend is your friend”. The second one is to clearly have a target which I had set at 0.93. (Note that the FOREX trade did touch the 0.93 mark and then retraced back — so technically I should have set a limit order at 0.93 to get the gain of 52 pips. But I am not that disciplined either). The third is to get out of the trade at the slightest movement away from the trend OR before any major announcements — which I followed.
So, kudos on being a well disciplined FOREX trader.
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