08/04/2009 GBPJPY Trade 2

Short 1 lot (1,000 units) GBPJPY @ 6056
Stop @ 6075 (-19)
Target @ 6037 (+19)

Confidence Level: 4/10

Reason to enter trade: Channel bounce on Daily chart. Same trade as previous trade.

Click above for larger image

Stopped out at 6075, for a loss of -19 pips. I only got stopped out by 1 pip! I should make the stops on the day trades 25 pips. This trade also would have worked if I had a slightly bigger stop.

In retrospect, I think that trading solely off the Daily chart and setting stops on the 5 minute chart is a losing proposition. I won’t do that again. I was just forcing a trade that wasn’t there.

However, I did follow my rule of two and out. If I am wrong about a trade idea twice, I won’t trade it again for the rest of the night. It prevents me from chasing and doing revenge trading.

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