A few days ago I went long 1 lot of EURUSD at 1.3475 or so. Then I watched it tank by maybe 60pips. I then wrote on a piece of paper DO NOT BUY ANY MORE UNTILL TOMORROW. Not 30min later I bought some more when it was down around 100pips. Good old averaging right.
Since then it lost another 300 pips. And looks like it might extend down to 1.275 easily.
But I've taken a step back now and have turned it from a trading position into an investment. :D (Always a bad sign!) I try and tell myself: Hey, Europe is sorting out their problem in a way that doesn't seem to be hurting the EU economy. For a start the peripherals aren't very big producers or consumers. Actually they're really small. However sentiment because of them has whacked down EURUSD so badly, that exporting from Germany, France has become very attractive and is helping the whole EU.
So that's the pro EURUSD long position stance.
Then there's the emotional contagion fear feeding into my brain. Now Portugal looking worse, Portugal drags down Spain, Spain infects Italy. Spain will be in refi trouble as soon december, latest January. That's the con for being long EURUSD.
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