This is a purely technical trade. USD/JPY has broken below the support at 92, with a wide-ranging down day and an opportunity to get in as the market bounced back a little. The daily chart shows the support level; the intra-day chart shows the entry point and stop. Charts from IG Index.
Is this a good enough trade for me to take? Perhaps not — I am not sure how much weight to put on a wide-ranging day, and may be biased from the fact that an early successful trade was based on just such a move.
Also, am I overtrading? Two new trades today, plus adding to the short oil position. For someone who is trying to catch medium-term moves, this does seem like overtrading, especially after yesterday’s flush of activity. But, on the other hand, it is probably good for a novice trader to trade a lot, in order to learn as many lessons as possible. At the start of your career, you trade with the lowest risk that, if things go well, you will ever run. That makes this a good time to try things out and learn some lessons.
Am I following too many markets, and therefore missing good trades by spreading myself too thin? The idea of trading a lot of markets is that it makes it easier to stand aside when there is nothing to do in any one market. And I have always found that following lots of markets gives me a better understanding of each one.