21/4/2011 – GBPJPY Trade Update

Hey Traders,

Following on from my earlier post and my talk at the Traders & Investors club were I talked briefly about this trade I thought I’d better write an update.

To fill you in I was short on GBPJPY, (you can read more by clicking here) price had dropped strongly earlier in the week, had hit my T1 and got over 200 pips up and within 10 pips of my final target before retracing. And boy, did it retrace!

It retraced all the way to my trailing stop loss which at that time was only 3 pips in front of my entry position.  So I had a position there that went from being +200 in profit to be closed out for +3.  I’m not going to deny that leaves me frustrated and there’ll be people here telling me I should have just grabbed profits when I had the chance.  And there would be a degree of validity in that.

 However my trade plan for these weekly Growth trades is to use a target and a  trailing stop and just let the market do its thing.  Either way I’ll be taken out at target or (most likely) I’ll just let the market take me out.  In this case it’s frustrating to give back so much profit, but ultimately it’s just all part of the game. Swings and roundabouts, etc.

So trade done for +116 on the 1st part and +3 on the 2nd part.  Overall a profitable trade. Next.

Trade well,

FXTraderPaul