u/beninvestments

Got a lot of potentials though. At least I didn't lose money. How was your week?

There are a lot of swing traders I’ve spoken to who don’t pay attention to fundamentals, and I think that’s a mistake. If you don’t understand why a market is moving, how can you confidently expect that move to high probability?

Take USD/CAD, for example. The bullish momentum is supported by the interest rate differential between the Fed and the BoC. A price action trader might see a supply zone and look for a short, but without considering the fundamentals, I wouldn’t call that a high-probability trade. Technicals might show you where to enter, but fundamentals help you understand whether you’re trading with or against the bigger picture.

I am not saying that it cannot go short because the fundamentals can change. I am simply saying that without a reason why, this short could be premature and the market with eat it, just my take on the importance of fundamentals.

https://preview.redd.it/d73lvu9scbuh1.png?width=930&format=png&auto=webp&s=758d966fd07f0f0ac1acaf59be7b152cbf77bbef

My question is why did you choose it? They reason why I trade it is because it is a recession free market. I am curious to hear why many of you are in this game.

A lot of good setups this week. I took CAD/JPY short and CHF/JPY short, splitting my exposure between the two. For CAD/JPY, I put half the position on at the initial entry price and the other half at 0.75× ATR. That second entry got hit overnight the previous day (my time), and the trade worked out well for me during both the London and New York sessions. No Judas swings either. Hope it was a good week for all.

USD/JPY had some solid reasons behind the drop: a more hawkish BOJ, intervention concerns around ¥160, and broader USD weakness from lower U.S. yields.

I liked the setup, but I didn't take this trade. Instead, I took a CHF/JPY short.

I preferred CHF/JPY because the weakness in CHF was more obvious to me, especially when looking at how the DXY performed last week. I felt CHF/JPY gave me a cleaner way to play the JPY strength while keeping my overall exposure in mind.

Though my CHF trades (EUR/CHF LONG, AUD/CHF LONG ) were closed early due to the CPI m/m actual, the moves were profitable. Good thing too.

Sometimes you don't need to take every setup. You just need to take the one that fits your risk and exposure best.

I only had one trade this week, which was an AUD/CHF long. I closed it this morning based on where price is currently sitting.

I also had a nice technical setup on AUD/USD, but with all the news, fundamentals, and DXY movement this week, I felt there was too much risk in splitting my exposure on AUD. Thank goodness I didn’t take the trade.

It was a slow week, but an awesome week nonetheless. Sometimes the best trade is the one you don’t take.

Finally back on Reddit! My family had a lot going on with my kids’ activities, so I haven’t been as active on here. I’ll be around more often now.