Times NOT to Trade
This article is a reprint
I was on the phone yesterday with a friend explaining why he should NOT take what was a legitimate buy trigger in JPY based solely on the time of the day.
It was 12:30 CST or 13:30 in NY. Yes it was a legit buy trigger on the 15 minute chart, and yes it was a trend trade because of the up-trend in place onthe 60 minute, but no I would not take it.
It was a deja vu moment for me, because it wasn’t that long ago where I was the one trying to talk my mentor into me taking a trade, just as my friend was trying to talk me into greenlighting the trade for him. I told him that the timing made it a sucker trade, and the guys that took that trade would be the guys that sold the bull trend line when they covered. Sure enough that’s where the market traded through the US afternoon and into Tokyo. Traders might ask why did the market have that sell-off before it rallied back ithru London? My answer, because the market wasn’t going up until those lunch time U.S. longs threw in the towel, and covered thier ill timed positions.
I had actually forgot about the conversation until he left me a message this AM, reminding me of the call.
It’s very simple for me, I don’t take short-term triggers from mid-morning U.S. thru Tokyo’s opening.
Jay Norris
www.trading-u.com
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