My Current strategy: Counter-trend. I am going to short this AUD.
Thoughts:
7/09/10- I have been watching AUDUSD for a few weeks now. In my opinion, this will be a good opportunity. This opportunity does not come very often, I am not saying it is a once in a blue moon - maybe once a month.
How am I going to approach this? This will definitely be a bet on the moderate size trend (NOTE to myself - NOT A BIG/HUGE TREND), I would like remind myself not to put too much money in this.
I have set up 2 pending sell trades - one it is at around 92 cents and the other is at 94 cents. The stop loss for 92 cents is around 20 pips (if i am not wrong), while 94 cents is around (40 pips).
The reason I put 20 pips stop loss is because I am afraid that AUD could shoot up even further -scary scary. I have also put more contracts for 94 cents sell trade. Note: Never risk my account more 2%. I am willing to bet at most for 2%.
Now what I am going to tackle is SIZE POSITIONING. This will be the key to win the bet.
1) I am not going to bet more than 1% for my first bet.
2) I will spread out the bet. BUT HOW?? STILL THINKING - got to start making plan
3)
Mental State:
07/09/10 - I am feeling very excited because this will be quite a big sum of money. I am kept on hoping that the trade will go my way. Maybe this is wrong? I should start thinking this is a bet and I am just testing my theory. But I am having trouble to keep this feeling down.
Preparation NOTE for the AUD trade:
1) Do not put too much money in the bet - 2% is at most. It is because this trade is not a once every 100 years.
2) Research and learn about size positioning - this is the vital point of this trade. We are betting on the trend.
3) Don't let your feelings takeover the plan that you have made.
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