London had holiday so it was slow and suitable only for 5min swing trading in the morning.
Later I was trading the news, as soon as spread came back to normal I shorted. Apparently there was some bad news also in the bundle, so it shot right back. I was in panic, what to do? Move stop, than in my head popped "You don't move stops any more, remember". I was waiting for -20 to hit me because I just didn't want out on a good news for usd. It stop before my stop and 800 level and I thought that maybe now the good news for dollar will slowly take eur/usd down. It was slow. I felt kind of protected with that stop while waiting. It was fundamentally o.k. to be short, protected with stop, great let's ride it on. It was fighting level by level down but not much. Gbp fell pretty hard before my exit, eur didn't so I felt that there will be reversal back. I could hold it but it's not for me, I gave it a chance.
Best thing today was that feeling of being protected by a stop. When you move stops than you never know to how big risk you will expose yourself until the end of day . So, you are nervous. With stop I felt kind of relaxed. Now I can see benefits of having and respecting stop levels.
+8 pips
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3 comments:
I understand exactly what you mean by feeling protected buddy! Stops are the greatest tool in my opinion. All the indicators don't matter if you are just going to give back your profits!
I have a few questions to ask about your day: I know you use 20 pip stops, so, I would hope you are looking for at least a 20 pip take profit right? Just do the math for a moment... if you are 50% right you will still only be break even using a 20 pip take profit...
What made you exit the trade? Was it a predefined number or what?
I am proud and glad that you are taking steps in the right direction comrade!
I should have realized the lack of movement today would be because of Holiday... Stupid me. Anyways, I posted a new blog I think you will like it FX.
Hi orion, nice blog post on casino. I don't use every time 20 pips, it's my max loss. As you can see in the first trade I exit with few pips loss not 20. I always decide based on market action and my interpretation of it. I don't have predefined numbers for exit or stop. Just the max for stop. I believe that for scalping having fixed stop and t/p of let's say 1.5R isn't good strategy. Things are to volatile from moment to moment.
I exit last trade as I explained because in that time gbp made big fall and eur didn't. For me that meant that we will see bounce in the pound and in eur that stop falling and diverging from the gbp. I didn't want to ride bounce. So I expected possible reversal in direction but not the one that I would trade long.
I gave a chance to the trade but it didn't fall much as expected.
i understand thank you.
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