Better day, but still flat

Day 2

Today's FX markets were relatively subdued compared to Thursday's wild swings.  I followed more of my rules, but still had difficulty avoiding a few low probability trades.  In one instance, I went long the USD/JPY, while also going long the Nasdaq100 future (NQ).  Both had MACD that appeared to be bottoming (w/i their 5min charts), but the 60min charts of both painted a different picture.  The USD/JPY was in the upper third of its channel (in the 60min chart), and presented little upside potential.  The NQ was also looking toppish in its 60min chart, given how much its moved off its correction low made roughly a wk ago.  The other reason why these 2 trades were doomed from the start was the contradictory nature of the 2.  When the USD strengthens, the equity markets (including the NQ) can be expected to fall.  To make matters worse for the NQ long, even before hastily jumping into it, markets that benefit from higher risk appetite (e.g. EUR/USD, EUR/JPY, AUD/USD, AUD/JPY) appeared toppy.

The losses on these 2 low probability trades were fortunately minimal, i was quickly exited both longs soon after realizing that they were hastily entered into. 

Time to head to much needed yoga, following a wk of intense trading.  One objective for next wk (in addition to following my rules laid forth in yesterday's blog post) is to avoid making trades where I have to keep close tabs...if a high probability setup presents itself, there'd be less need to constantly monitor once the market moves in the direction anticipated, and as a result, less shoulder and back stiffness and pain.

Have a great wkend!