Expect the Unexpected when Trading the Financial Markets
A couple of days ago, I had shorted the EURUSD forex pair at the point marked above. The price action looked as though it was just retracing before a further fall. I was thinking that a move below 13000 would trigger a flurry and sell trades and the market will drop a few hundred points.
I was a little wary as the downward momentum after I had gone short wasn’t really there so I had been moving my stop down as the price action moved down. Today, the market open a little lower but momentum was totally non-existent and something just didn’t feel right so I move my stop to breakeven to reign in risk. Not long afterwards, the market rallied over 200 pips – the big green candlestick!
My stop was triggered but it was a scratch trade and it just goes to show that you have to expect the unexpected with financial trading. You just never know what is going to happen and you have to plan your accordingly. I’ve been reading the blogs and a lot of people were expecting a huge move down. As I said, expect the unexpected, this current move up could be a stop hunt before it comes crashing down! You just don’t know!
Anyway, I’m happy we didn’t lose anything on this trade. However, the trade was +60 up at one stage yesterday so it’s obviously annoying to give up that gain. However, with my expectation of a potential large move, I was willing to hold this trade as long as we were on the right side of it.
