Since it's Black Friday, I'll write about catching good bargains and picking the best possible price. I'm not sure if thsi is a girl thing or if it's a natural human tendency, but I'm pretty sure it's normal to want to get the best bang for your buck, right?
In trading, this applies to traders who often look for retracements as best possible entries when jumping in a trend. Even if the markets are trending strongly, prices usually pull back before moving forward, which is why it makes sense to wait for those retracements when going for trend plays. However, there are times when prices don't retrace as much as we expect and there are even those instances when prices don't pull back at all. In these cases, some traders (like me) are left to sit on the sidelines instead of being able to make profits off the ongoing trends.
This is precisely how last week turned out for me. I was hesitant to just jump in the selloffs even though I saw enough fundamental and technical reasons to do so, simply because I was waiting for the perfect entry. Sadly, since those trends were really strong, the pairs didn't pull up to my desired entry levels and I was left trade-less for the most part. As I have always mentioned in my older blog posts, I'm not too comfortable with trading breakouts since I already had a lot of heartbreaks with fakeouts before.
Towards the end of the week though, I decided to go for shallower retracements or even jump in when the technical signals lined up. Besides, I thought that the strong trends would most likely continue and it would take a really REALLY upbeat report to turn things around. But with plenty of traders on a holiday and with hardly any economic data on deck, risk aversion was likely to stay in the markets. And it did!
Because of that I was able to catch a couple of short-term trades that gave me a decent profit to be thankful for. It ain't much but hey, a profit is still a profit. If this strong trend still continues in the coming weeks, I'll just have to keep reminding myself to try to catch at least a part of the move instead of insisting on catching the best possible entry.
Happy Thanksgiving everybody!
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