Thursday, September 3, 2009

Gotta be more careful

I lost a lot on a USD/JPY (short) trade that I never should have made. Basically, this was a Bob Iaccino recommendation that I did wrong. His firm never entered into the trade, but I did. The entry point was on a diagonal trendline and not a horizontal trendline...this is important because, depending on how long it takes for the trade to initiate, the entry point on a diagonal trendline will change.

Here's how he described what he wanted us to do (clicking on the text gives you a better read):



We were given the approximate price of 92.17 to enter the short if it closed through that price on the 4 Hour chart. BUT, since the trendline was heading South East, the entry point would have to decrease simultaneously. I got in because the bar had closed below the 92.17 price mentioned above...but I failed to realize it was still within the decreasing wedge.

Had we closed below 92.06 (out of the wedge and which never happened), that would have been the proper point to short...I went with the static price given from the morning webinar...92.17.

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