Thursday, July 2, 2009

Leverage and Other Crap

Take a look at the EUR/JPY pair today; it's far below my entry point. If I wasn't leveraged 60:1 + I may have been able to make some bank on it (of course, I don't know what I was thinking with my stop loss). In any case, I found that I had ~$27 in an another account with FX Club. I put on a long trade in the EURUSD pair at 1.4010 and am looking for a retrace to 1.41 for a $9 gain.

My stop is going to be based mostly on fundamentals, as was my entry (although I had trouble entering, as I normally do with new trading programs...I'll get better). My exit is based on technicals. The fundamental reason I'm betting against the dollar is that I think the 9.5% unemployment rate, while better than 9.6% is still pretty bad, not to mention, it is probably going to be eclipsed by the a confounding increase in job losses. In any case, I don't see too much deviation from the previous trend as there's nothing amazingly and/or unexpectedly good in today's numbers.

I will get out when my account drys up, when my profit target is hit, or fundamentals (or technicals, but to a lesser extent) change.

PS: Leverage is around 37:1

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