Woke up richer by buying the Aussie (AUDUSD)
Buying AUDUSD
Last night, I went long the Aussie (AUDUSD) forex pair at 10517. From the chart you can see that there was support at 10500 and the trend had been up so this was a retracement play. The first target is the high at 10600 but what I would really like to see is a break of this.. if so, we should see a strong move upwards.
I could take profits around 10600… to be safe, 10590 has more chance of making it but one either takes profit around 10600 or you keep your trade in play expecting a retrace at 10600 before moving higher. Earlier in the day, I had move my stop to breakeven so the worse thing that could happen is that the market retraces deeply and I get stopped out for a net zero sum!
My research has shown that those who can hold trades for longer and wait for bigger moves are those who make more money overall. Trying to weave and out of trades during the day is tough and unless you’re very experienced, it’s a very difficult (not to mention stressful) way to make a living!
