Friday, December 21, 2007

AUDJPY Overnight Upswing


I'd been getting into the AUDJPY pair during most of the week. Now, most of my small nibbles have been taken out on the way up, at a profit, while I've sunk some larger carry positions about 120 pips below the current price.

I like that!

Anyway, as you know, it's very hard and dangerous to bottom pick, but if you don't mind accumulating some (manageable) risk, then you can (hopefully) eventually reverse your losses and grab some profits and some carry positions once the market does finally come back to you.

The hardest part is to hold onto positions after the floor has dropped out from under you, again and again, on the way down. When the market rises while you are sleeping, you don't get the chance to get nervous about your profits... but you can set healthy stop losses afterwards -- and hope for a major uptrend continuation.

That is where I am right now. The market has opened and if the DOW decides to shoot up today, which it could, then I'll be smiling. If not, I don't mind hitting the stop losses and banking some respectable profits.

Good luck out there!

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