This is one pair of currency which I have a love hate relationship recently. Firstly, I found this in an article and thought it was a timely move as the monthly chart above shows it has peak around the 0.97 area and has started to show declining moves. So I shorted at various prices until it reversed. I was stopped out in 3 positions around 0.93 level zone and had a small loss of around USD100.
This is the 1H chart showing the drastic and sudden 2% drop yesterday! See the various triangle that I was riding nicely and happily. I was stopped out because I was using trailing stops and was not expecting this move at all. Actually, on hindsight, I should be more prepared for it since it is made known to me in the news.
I think on our spiritual journey with God is something like this as well. Imagine the 2% drop is what you are asking from God but you had no idea when it would come, right ? And you just prayed and prayed each day despite of the challenges you faced. Then, something snapped one day and you gave up, thinking God has forsaken you, neglected you and started to blame the whole world for your circumstances (I do that too, sometimes, forgive me Father!)
Then , he strikes at a perfect timing and gave you the present you had been waiting for. You were simple in shock and speechless (like I am). Fortunately, I found another pair, EURCAD and managed to take some nice profits out of it (thank you God).
1 John 5:14-15This is the confidence which we have before Him, that, if we ask anything according to His will, He hears us. And if we know that He hears us in whatever we ask, we know that we have the requests which we have asked from Him.
So, if my objective is to short this pair, why do I adjust my stop loss so tight ? I was afraid. I had experienced good trade turning to bad trade many a times and to prevent that, with any profits I had now, I either get out asap or adjust my trailing stop loss. Notice the 2% drop was furious, not allowing any opportunity to re-enter . I read a forex book by Alexander Elder and he said the objective of investing in forex is two fold. One to make money and two , to learn from our mistakes.
I am glad that I am now more confident in identifying trend and now have to put more work on price entry and exit to maximise profits and minimise loss.
I have also learn the importance of delayed gratification in forex trading. I heard about several trading strategies where one can enter hundreds of trade per day and earning 10pips for each trade. I find that approach too stressful as it requires eye and hand co-ordination and the mind needs to be working actively. I prefer a slightly longer trend, using the monthly chart as a big picture to drive me to the hourly charts.
May we all be reminded of God's grace towards us and continue to pray daily and learn to be patient and await upon the promises of God. Amen.
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