June 16, 2008

Sharp loss experienced

EURUSD hit the stop loss at 1.5360, making 50 pip loss, but the size of position was three times more than my average trades, so increased the magnitude significantly.

I don't know the actual reason behind the reverse in the market. It might be a comment from an EU official. It happened very fast; considering the time of the event which is about shifting between Asian and European sessions, I guess it might be result of different views in the market.

It is relatively reasonable to expect that the general risk would rise when we move through different sessions. So I could be blamed for underestimating this fact when I decided to increase the size of position that time, but not more.

Another fact might be that I didn't give the market adequate time to reflect any possible effect from the last weekend G-8 summit.

No comments:

Post a Comment