It pays to stalk a trade

On Sunday our first set up never materialized. Bear Stearns collapsed causing some panic selling of the dollar and the need for the Fed to come to the rescue. Then on Tuesday the Fed was expected to cut the discount rate further, which they did, sparking a rally in the stock market and some good dollar buying. The anticipated trades presented themselves and were ripe for the picking.

Sometimes it takes two shots before the move occurs. Having a good methodology helps but patience is the key ingredient.