Aug 25, 2012: End of the week review and thoughts
Still in a trade, I decided to hold it over the weekend because I think any big spike is highly unlikely (just because of the nature of the currency markets) and I have stops set.
So I did end up getting into a Aussie long, a bit later than expected. I could have held my original position for much longer, but when I think about trades, I think it’s good to think about how many pips I got, rather than how many pips Icouldhave gotten. It’s always good to see if there’s something to change and maybe get out a few more, but be happy with what you get, especially if it’s good profit to begin with.
I’d like to attribute this trade to skill, but I feel quite lucky about it, even though I didn’t get a ton of pips out of it. Here’s what I did:
I felt like there was going to be a pullback on the pair, so after 2 fairly good sized down candles, I made an entry. In my thought process, could it have gone down again? Absolutely. However, stochastics on the 4 hr charts were super close to 10, so I was expecting to grab something. I made the stop loss 5 pips below the low of the short term low (so the candle on the left of the entry candle). This turned out to be a very nicely put stop, as price ended up bottoming out rightabove the stop, by about 2 pips. The second part I feel a little lucked out by was where I took profit. I used the TT system, rounding it to the nearest 25 (set at 1.0425), which was also barely hit before coming back down.
I since then moved up my SLs to entry, so I’m guaranteed pure profit on this trade. Should price plummet and knock me out of the trade, I’ll have made about 30 pips on the first position, and 1 pip each on the 2nd and third positions. Pretty good for a Friday. I should do some thinking about if I want to change up my position sizes (instead of 33% on each one).
The excel spreadsheet is now putting me up roughly 50% from where I started, which is kind of insane to think about it.
I feel really good about these trades, however I will put in at least another 10 trades before I consider going live.