Wednesday, March 5, 2008

Is 1R enough?

First trade in gbp/usd was unbelievable. While eur/usd and usd/chf headed in the direction of dollar weakness gbp/usd was so still that it was funny. So I exited that trade with spread loss. After that I had two trades in eur/usd with no luck. Finally I was again in gbp/usd but this time short because it looked to me that there is resistance above 800 and that it's not easy for gbp/usd to go in that direction. I had profit on that trade to finish day positive with +5 pips.

Other think that I would like to mention is that any of those 4 trades would get 1R if I stayed in them until and took profit at 1R.
I don't know is it always good to wait for -R or +R. First in gbp/usd was 12, than in first eur/usd trade it was 4 but I didn't take the profit at 4. Second eur/usd trade had 5 for R and I exit it earlier for -3. At last gbp/usd I took +10 but it would come to +12.

I don't know maybe I should look only for R on any side. I definitely have tendency to take profits early and cut them. Regarding the exits it would be great to have only R loss without averaging and moving stops.

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