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1/6/08 EURGBP Trade

Written by Hugh, on January 6th, 2009

Short 1 (100) @ 9164
Stop @ 9311 (-147)
Target @ 8827 (+337)

Entered on a break of the small consolidation pattern that usually signals a continuation of the trend.

Once price started moving, I moved the stop to 9254, the middle of the consolidation.

Stop moved to 9159 (+5 pips).

Click above for larger image

Click above for larger image

I got stopped out for +5 pips.

As you can see, the trade would have worked pretty well if had kept the stop where it was!  Don’t move stops, don’t move stops.  I could have made 220 pips all the way down to the low.  The great thing was that the market respected the consolidation area and proceeded down after testing it from below.  This gives me a little confidence that I’m trading a more ‘normal’ market.




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Category: My Trading   Tags: ,

This post was written by . His goal is to become a professional trader.
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Joan

You said two things separately and if you combined them it may just be the right idea. You said, "Don’t move stops, don’t move stops." and "The great thing was that the market respected the consolidation area." Combined the two and say, Don't move stops to the consolidation area. At that point in the trade I would have left my stop in the original location. I would have chosen my profit target a little sooner too based on the movement of the pairs from Dec 12 - 17. With that in mind I don't know if my risk reward would have been enough to take the trade. It would have been a 1:1. I think you are really on to something with these trades. All the testing may have given you an eye for good setups. Way to go!

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