Don’t Be Afraid to re-enter a Trade……

if the setup is valid – even if you’ve just been stopped out.

This morning’s trade was the G-Force set play with a short entry on cable at 1.5908 with a 20 pip stop and 60 pip target.

I was a little concerned about entering the trade above the massive one and a half but the play is the play and in this case it’s not my place to question just to do what needs to be done.

There were a couple of items today that gave me some comfort that perhaps the 1.5000 handle would not hold.

Firstly we had some data for the UK today coming through at 0930 – GDP & Current Account balances – which should they be worse than expected (and was there ever any doubt ?!) the momentum would carry GBPUSD cleanly through this barrier.

Secondly – massive divergence on the 4 hour chart

However, despite 2 very good reasons for taking the trade, I was stopped out of G-Force for -20 pips (first trade and first slap of the day – not a very good start!).

The reason for the trade was still there if I could get another entry.

There are a few things I have learnt since I started trading :

1. If you are a cry baby – this is not the game for you.

2. If you take every loss personally – do not trade. (You will be a mere shadow of your former self by the time the market has finished playing with your emotions)

3. If you think you are always going to be right and that you will never have losing trades – this  is not the profession for you

How you deal with your losses will determine your success as a trader.

Re-evaluate and re-execute (is that a word? lol) if the set up is there take the trade.

So I did.

Re-entry short on cable @1.5016.

First target on the trade was +20 at 1.4996 – scaled out half the position and moved stop to breakeven.

Second target was for +60 at 1.4956 which was achieved when the UK economic data was released.

The great thing about this trade was that the second attempt had a better entry level and I was at breakeven with some profits banked 2 hours before the red item news came out.

One losing trade is not the end of the world.