No trade prior FOMC
Interesting market move this morning, first we have the rumor about France been downgraded by Fitch, and then the news for US new home sale down 33%, it's down 52% in the west. What's interesting is, in average, 70% American own their home, but less than 60% in California. And we all know that home price in California is about 2 or 3 times higher than any other place in US. So that 8000$ tax credit won't help much in California. For example, a home for 200K vs. a home for 600K, 8000$ tax money won't matter that much on the 600K, a 2% drop can be easily 12K. That's why I'm wondering why in the west, so many people are rushed into buying new homes.
News is out, there is no news.. FED keeps on doing what they do as everyone already expected, extended period is there. I went short on the pop, after about 50 pips lost, I finally got a 1/2 size at 1.2340 level, now sit down and tight my stop and let it run.
What make me feel bad today is because:
1: I short on 2270 right after the news when the spread shrink from 10 to 2, I feel like finally I can trade, so jump right in, and stop is at 93, with 22 pips risk, I should really go with half size.. also It's a chasing trading on 10 seconds chart, typically I should be shorting the pop.
2: After I was stopped out, I basically go in with a damaged brain, with only thing in mind, I have a daily limit for 60, let's get some winner before that used up.
There is only 1 good part, I took 2 times of profit in my short when the price on the way up. and I didn't move my stop.
Lessons and sumary:
For FOMC and news trade, DIV don't work well, let's try to follow the trend with EMA62 setup...
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