ForexSpirit

Much better today after yesterday’s snafu.
Activity really died down after NY lunch so I kept to the sidelines. This generally happens on Friday afternoons but with it also being the last day of the month the lull was all but certain.

  Trade   
Market        
Direction  
Entry          
Exit          
Pips  

  1
EUR/USD
Short
1.2930
1.2920
10

  2
EUR/USD
Short
1.2839
1.2829
10

  3
EUR/USD
Short
1.2898
1.2888
10

  4
EUR/USD
Short
1.2801
1.2792
9

  5
EUR/USD
Short
1.2820
1.2810
10

  6
EUR/USD
Short
1.2800
1.2790
10

Total daily pips: 59
Trade 1 occurred just after 18:00 EST yesterday evening, but [...]

I’ve been reading (or to be completely accurate, listening) to a few Malcolm Gladwell books recently.
I’m intrigued by his assertion in

A bad day at the trading office today.
As seems to be so often the case when I take a loss it is directly tied to the first trade of the day. This is in part related to the fact that often the first trade on such days ends up being in the wrong direction [...]

With the Fed rate announcement in the afternoon I kept my powder dry for most of the day. Things were very range bound all morning. There was a quick spurt just after the announcement and then it all went pretty quiet again.
The last trade placed for the day passed over the 17:00EST end [...]

No clear trend direction in EUR/USD today. It was a bit all over the map really.
My thoughts on how to alter my position sizing based on being in a drawdown situation relate to the rate of recovery table that you’ll often find mentioned in trading circles.
The concept is simple and straightforward: the [...]