The Reserve Bank of Australia surprisingly held rates at 3.25% rather than cutting a half a basis point as expected. However, the technical setup was strong and the reward to risk was in our favour, providing around a 4:1 to the lower support level. Remember it's not whether you are right or wrong, it's how much money you make when you win and how much you lose when you're wrong. After all the most important and free concept we have in trading is reward to risk.
Eg: Reward to Risk of 3:1.... if I lose 7 times but win only 3 times I am still net up 2! This is so important in our trading and just highlights the previous message.
Also, congratulations to Barack Obama, hopefully the Democrats and Republicans can join forces and sort out the US fiscal cliff which is high on the agenda. I can't see any immediate setups and am waiting for post elections, central bank announcements to fade before I do anything.
I have been informed my posts are being sent out a day late, so my apologies to all. If you join me on Facebook you can receive live updates and new posts. However, I will sort this out as soon as possible.
Happy trading!
Thanks for your positive and realistic thoughts on the trading journey.
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