Here is the second part to the previous GBPJPY trade. I originally canceled the trade because it was a little frustrated with my performance for the week up until then. The 30 minute chart:
Click above to enlarge
I was slightly profitable for the week and I thought it might be a good idea to play it conservative and end the month with a profit. I thought about that for about half a day and decided that wasn’t the right attitude to have as a trader.
This setup is one of the ones that I have done the most backtesting on and have the most faith in. So if that is the case, why shouldn’t I take the trade?
The chart looked pretty good in my opinion, there weren’t any major support or resistance levels that would stand in the way of price getting to the target. So I entered the buy orders again.
I ended up closing the trade early. Price eventually hit the target without too much hassle. Here is the 1 minute chart:
Click above to enlarge
The total profit on the trade was +9.0%. That is a pretty good gain, but again, I closed the trade early before it ended up hitting the target.
I’m not sure how to fix this issue of me exiting early.
It may not even be an issue. I am getting a majority of the money off the table before something bad can happen and maybe that isn’t such a bad thing.
Win or lose however, I am glad that I got back into the trade. There is no sense in spending all the time to backtest a setup and not take it when it comes, especially when it looks good. I think that this is an area that I have improved. Before, I would have just called it a week, even with this great setup staring me in the face.
That is a scarcity mentality. I have to believe in what I have tested and take the opportunities when they address themselves. I may not make money, but I can’t make money by not trading.
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thanks for sharing!!