Trading the Eurodollar

This journal serves as a tool to be a disciplined trader. Been trading for more than 3 years. Used to have so many indicators on my chart that I confused myself even more.

Nowadays, I trade using the SMA 20, rounded numbers, fib levels and candlestick formations on a H1 Chart.

This journal also documents the emotions and thought processes during trading.

### This Journal is not to be treated as a SIGNAL to BUY or SELL! ###

My Rule #1 in trading: Patience, patience, patience and let the price comes to me.

http://img594.imageshack.us/img594/5979/euh188.gif

I am looking for opportunity to short around 1.4282. Whether or not, I make the trade depends on the price action. Used to just place the pending sell order but after so many heartaches..I think I will wait and see if the short door will open.

http://img196.imageshack.us/img196/2193/euh1882.gif

This is a counter-trend trade setup. I am considering to buy, depending on the next hour candle and market sentiment.

http://img546.imageshack.us/img546/734/euh1883.gif

The Long Door opened on a M5 chart and I took it.

Current Position: Long @ 1.4220 SL 1.4180 TP 1.4320

Since this is a counter-trend, I will be monitoring it closely.

The thing about counter-trend is very high possibility that it wouldn't work out against strong momentum trend.

So far the entry zone (1.4188) held well as support. With the long tail pin bar on the H1, it may indicate a reversal in order.

If this turns up to be a reversal, I may consider extending TP to 1.4400, depending on the price action. Once the price goes beyond 1.4250, I will place the trade @ BE and let the profit run.

Still.. counter-trend is very risky. It would be better to place the SL around 1.4125, just below the previous low. But keeping the SL tight is also good.

I decided to move my stop-loss to 1.4125, just below the previous low and TP to 1.4400.

This should give the price run more room.

Closed my position at a small profit of 2 pips because of the looming BOJ intervenation.

http://img200.imageshack.us/img200/5571/euh1884.gif

I placed a pending sell order @ 1.4200 ..just under the red cross.
TP 1.4100
SL 1.4300

Another reason is that there seems to be a very weak upthrust momentum and since this is a counter-trend trade, it seems to be a good idea to close it at that moment.

1.4250 is the resistance of the moment. Once broken, it will surely fly to 1.4300.

But if rejected, it will come down to 1.4200 again and pick up my EU short.

Just sold EU @ 1.4237 SL 1.4255 TP 1.4100

My other sell is still pending. SL 1.4300 TP 1.4100

Trade #1: Stopped out (-18 pips)
Trade #2: Pending

Trade #2: In progress


EU SHORT @ 1.4200 SL 1.4300 TP 1.4100

http://img593.imageshack.us/img593/4278/euh1885.gif

Another confirmation/reason for the short position many hours later...

Trade #2: Stopped Out (-100 pips)

I am currently flat, looking for trading opportunity.