Run Away Markets

Submitted by Marco on 30 June, 2006 - 13:01

Run Away Forex Markets

Ever had the feeling you've missed a great trading opportunity? I bet every trader has: As I write the dollar is making a very impressive recovery. If you look at the small screenshot above of the AUD/USD currency pair on a weeky-hourly chart, the dollar made more than 100 pips in the past six of seven hours. Note the fat green candlestick - we all know what economic event triggered that - the US interest rates.

I could have places a long trade last night - but I wasn't game enough - because there was no trigger even in my trading plan. To trade economic events effectively you need to be awake and at your screen to trade. In Australia (Sydney time) the FOMC announcement was at 4am in the morning. Do I regret not being in the market? No. I have learnt in the past that there will always be new opportunities in future and that if I ever deviate from my trading plan and trading rules I expose myself to increased risk. So if you ever miss an trading opportunity - don't regret it. There will be more tomorrow, next week and next year.