Friday 14th May 2010 – +98……but look what you could have won!

Overall this has been a nice enjoyable week of trading which ended on a high note.  I’ll give a break down of Fridays results and then talk about some good trading….and some not so good.  Unlike FX Trader Sandy the mornings this week have worked well for me as the following breakdown for Friday morning shows: 

GBPUSD +34

GBPUSD 0

EURUSD -15

GBPJPY +12

EURJPY +17

GBPUSD +32

EURUSD +13

GBPUSD +5

 What I want to talk about though is the first two cable trades.  I’ve attached a 1 minute chart which shows some good trading and some pretty poor trading.   

1. This is all on a 1 minute chart but my entries where on 60m and 15m charts.  Here I had a nice 60 min pivot and a Fox In The Box set-up (learn about them here). I’m short Cable at 1.4614, with a target  at 1.4580.

2. Price continues down and now my Early Morning Breakout triggers at 14596.  I now have two positions short on Cable.  My inital and my EMB which I’m counting as an add-on trade.

3. Price hits my target on the 1st trade at 1.4580 for +34 points.  A nice start to the morning.  My stop is also moved to break-even on my second position and everything is hunky-dory. 

4.  Price continues short and actually touches my target at 1.4551 but I’m not filled on the spread.  I’m busy watching several open positions at the time and not on the 1 minute chart.  Had I done so then I would have seen the low-test pin bar and just decided to close out.  As it is price bangs north hard.  My rules have been to leave such trades to run themselves out either for profit or break-even.  In hindsight it’s blindingly obvious on this 1 minute chart that the move was over and it was time to step-aside. 

5. Price hammers north and hits my stop which is at entry for a scratch trade.  I followed my rules….but wasn’t being canny enough and gave back 40+points of profit.  As Jim Bowen said on Bullseye, “Let’s take a look at what you could have won!”  Left me a bit grizzly at missing the obvious end of a trend and giving back a large chunk of profits.  But that’s part of the game.

Overall I won’t complain as I had a good day (+98) which ended a good week. However as you can see even when you’re trading well you have to be alert to complacency / shoddiness / over-confidence, call it what you will.  The moment you think you can take your eye off the ball is the moment you have to be most wary!

Trade well!

FXTrader Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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