GBPUSD trade result: +62 pips and counting

January 15, 2014 at 4:27 pm

Both profit targets were reached. The 3rd unit’s SL is currently at 1.6366

News trade

January 15, 2014 at 1:19 pm
EURUSD Sell 1.3598 Buy 1.3633

Wd., Jan. 15 morning trade

January 15, 2014 at 1:14 pm
GBPUSD Sell 1.6398 SL 1.6441 P1= 1.6378 P2= 1.6356

What to do when your trade goes against you?

January 15, 2014 at 2:19 am
Just like it happened to me today, sometimes you enter an order, it gets filled then goes a little bit against you and gets stuck in a range. What should you do?

After years of trial and error I finally convinced myself to take a loss and go home, so to speak. I know first hand that this is much easier said than done. But once the reason for your entering the trade is not there anymore you must get out.
Just think about it. The only way to win consistently in the long run is to have the odds in your favour. In order to get the odds in your favour you must use some kind of a system and must follow that system’s signals. Therefore, if your trading system gives you a signal to enter a trade, you should do so. But if the signal for entering this trade is no longer there you should exit that trade immediately.

Let’s see what happens when you keep your losing position in order to avoid taking a loss:

1. Often times you risk more than you should. Even though your original stop loss was not hit you should not risk that amount of money anymore. Yes, you were willing to risk that money because your system gave you a signal to enter the trade. But since the signal is no longer there what is the point in risking this money?
2. By holding a position that is not moving anywhere you tie up your trading funds. There is a good chance that another opportunity will come along and you won’t be able to take full advantage of it.
3. You distract your attention by watching this trade that goes nowhere.
4. Most of the time when you are holding a losing position and hoping for the better, you get anxious and that is never good for trading.
5. Deviating from your trading system is a sure way to a disaster. And by holding a position that is no longer supported by your trading system’s rules, is the same as deviating from the system.
If you follow my trades, you will see that I could have avoided taking a loss today. As I am writing this, the EURUSD price just dropped below my entry price. So, not only could I avoided taking a loss but I could also make a profit on this trade. Does it bother me? Not really.
You see, in order to avoid losing 60 pips today, I would have to risk 60 more pips. This would be OK if there was a reason for it. But since according to my trading rules there was no reason for it, holding this position any longer would be the same as tossing a coin. But as I explained in my previous posts, you can’t win by tossing a coin in a long run because there is a spread (or commissions in other types of trading).

Tu., Jan. 14 news trade results: -60 pips

January 14, 2014 at 9:36 pm
The price did not move much on the news today. It just went down enough to get me on board before bouncing back.

I just closed the position at 1.3678 for a round loss of -60 pips.

Unfortunately, there is no way to win every day. When losses do happen I prefer to cut them short and move on.

Th., Jan 14 morning news trade

January 14, 2014 at 12:40 pm

EURUSD Buy 1.3703

Sell 1.3658

Mo., Jan 13 trading results: +121 pips

January 13, 2014 at 3:06 pm

There was a quick and sweet trade in GBPUSD today. Both profit targets were reached in a whim and I closed the third unit at 1.6353 making a nice quick profit of 121 pips

The other orders are cancelled.

Mo., Jan. 13 morning

January 13, 2014 at 12:54 pm
EURUSD Buy 1.3703 SL 1.3648 P1= 1.3723 P2= 1.3743

GBPUSD Sell 1.6419 SL 1.6451 P1= 1.6402 P2= 1.6481
USDCHF Sell 0.8998 SL 0.9041 P1= 0.8981 P2= 0.8961

Jan. 10 end of week results: +150 pips (total: +1300 pips)

January 11, 2014 at 1:56 am
The total result for this week is +150 pips.

The total up-to-date profit since Nov. 21, 2013 is +1300 pips.

Fri., Jan. 10 trade results (+80 pips)

January 11, 2014 at 1:49 am
The initial move of EURUSD price to the downside triggered my sell order for 3 units. Just minutes later that sell order was covered for a loss of -90 pips. Simultaneously got triggered my buy order at 1.3606 and the price continued its upward move.

Out of the 3 units bought at 1.3606, the first unit was sold at +20 pips profit and the remaining 2 units were sold for +150 pips.
The total result today was -90+170 = +80 pips