May 28, 2010 GBPJPY Counter Trend Trade

Written by Hugh, on May 28th, 2010

This is one of my favorite setups and this one looked good. Price hit the R3 of the previous day and there was also a Counter Trend Trade on the previous day.

This trade was on a Friday however and it wasn’t a good week of trading for me so I decided to just exit the trade and be done with it. Only one position was hit and I just wanted to get out of it. Here is the chart:

Click above to enlarge

As you can see, price eventually hit the target. I ended up losing -1.0%.

In hindsight, I should have left the orders in place and just set a stop loss above the resistance. There was a beat flag formation that was a pretty good signal that the trade would work.

When my trading is not going to well, I have to take a step back and consider that I am making a decision under some stress.

I need to take a little time off and do more backtesting, so I will be taking a few days off after the long weekend.

I hope your trading is going well!

If you enjoyed this article, you might also like: