I was listening to the financial news the other morning, and the commentators were all focused on Google. Since the start of the year, the stock had been all over the place, with frequent gaps and high volatility. The steady, organized climb it had enjoyed for years was starting to look more like the chaotic distribution phase you see after a bubble bursts.
It’s not even 4:30 A.M., and I’m pretty sure there isn’t enough Earl Grey tea in all of Florida to get me going. But I promised myself I’d be up early, so here I am. As I scan the charts, I can see the USD/CHF is still on my radar, and the Canadian dollar is continuing its slide. My first thought, and my first warning to myself, is simple: don’t revenge trade.
I’m a visual trader, which means my decisions are based on what I see on the charts—not on news headlines or gut feelings. My approach to is built on this principle. After weeks of analyzing charts, I hope this is becoming clear.
Looking out my hotel window at Times Square, I can see the city is taking a breather this morning. It’s Monday, February 20th, and the usual stream of yellow cabs is just a trickle. The streets below are quiet. With U.S. markets closed for the holiday, the usual financial buzz is on pause, even as the rest of the world keeps trading.
On Fridays, my trading day almost always wraps up by noon. Today, I'm clocking out even earlier for a chiropractic appointment. If I'm in a position when it's time to head out around 10:45 A.M., I'll just let my automatic orders manage it. After that, I’m heading up to Orlando for an internet marketing seminar—a three-hour road trip from my place in South Florida, which I actually enjoy. I just put on an audiobook and go.
This morning started like most: scanning the markets for familiar patterns. I was looking for specific setups, or “Waves,” that signal a potential move after a recent breakout. I quickly flagged three currency pairs that looked promising: the AUD/USD, USD/JPY, and EUR/JPY. For any swing trades, I needed to see a clear trend already in place before I’d even consider looking for an entry.
It was Wednesday morning, and the markets felt like they were holding their breath. It was the day of new Federal Reserve Chairman Benjamin Bernanke’s first testimony before Congress, and everyone was waiting to see what he would say. Coincidentally, it was also the 35th anniversary of the NASDAQ. I used to joke that two things were born in 1971: me and the NASDAQ.
Getting to my desk before 6:00 A.M. is a small win, but these little victories are what build confidence. It’s easy to get discouraged after a sick day or a late start, but in trading, confidence is your most valuable asset. Lose that, and even the best strategy won't save you. I’m focusing on stringing together a few well-prepared sessions to get back into my rhythm.
Some days are quieter than others in the market, and Monday was shaping up to be one of them. On days like these, I avoid chasing big moves in volatile zones and focus on clear, confirmed signals. It’s a core part of my approach to this —discipline over drama. Here’s a look at what popped up on my radar and how I handled it.