So my last (and first!) entry made clear what I’m after. Small trades every day in a disciplined fashion. Now look and see what happened 9 hours later: The market took off out of the blue, the Dollar took a plunge and caused the candles to travel to the sky and even further until they reached outer space! Since there hasn’t been any event that could have triggered this strange behavior, the only explanation is that the thin market during the holidays became unstable and volatile. The EUR/USD ran up 1.8 cents, then down again and then up again. All together there were 300 pips to be made until the very time I’m writing this. This makes my previous entry look somewhat ridiculous, when I showed you how to wreck 10 pips out of the market.
The question is: Should we go for it, shouldn’t we take these 300 pips?
Well, you certainly could. It did increase any given account size by 75%! Sounds like a good excuse to put up a screen in your kitchen so you wouldn’t miss out on opportunities like this one.
Here is what’s going to happen: Taking these wild rides is quite addictive. A successful trade like this makes you look out for these big numbers all the time and before you know you find yourself on the doorsteps of the crack house (Rob Guth), unable to execute your default trading methodology. What feeds you and your family is a 5 pip trade, consistently executed. Don’t let Forex take your life away - get in, get a little and get out. 3 hours in the morning. Get a life.