Tuesday, May 5, 2009

Breaking to new high

Few interesting things to say. My first trade was a mistake, you see that I gain few pips on it but I miss clicked, I wanted to short there. Well what can I say, I didn't believe that gbp/usd will break to the new high. I usually don't believe in such situations, some contrarian bias in me. Well at least I'm not stubborn as I was years ago, so when it did brake important daily high I was in long to ride the breakout momentum. It was pretty much usual how it was moving until it broke 5100 mark. That 5100 was resistance and it wasn't so easy to go through it, but when it finally capitulate I was expecting real surge up. It didn't happen, for me that meant that it's not only figure resistance there but some real selling that is going against buyers. That's why I closed my longs. I'm trading micro time frame and I can't stay in big retracements how ever powerful underling trend is.
Other interesting thing is that now when I have won and gained some nice profit for my kind of trading I enter in a state where I don't want to lose any of it. Well then it's pretty dangerous to trade from that point. If I enter some trade and somehow it turns against me I will not exit. I will not let any of my profits. That way I could start averaging, moving stops whatever, just to keep things as they are never mind what is going on in unrealised p&l at that moment. So it doesn't matter are there some nice opportunities in the market, better for me to call it a day from a risk standpoint. It really doesn't matter how much did I earn in profit is it 5 or 25 pips, when I hit state that I'm not willing to risk just stop trading.
Gbp/usd trades were with 1/3 of size, +13 full size pips.

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