I got stopped out on my last Bossilator trade for a tiny loss. However the Bossilator was still red, so I decided to look for another entry. During this time however, the markets were really nervous about Greece and I felt that the EUR had a very bearish bias.
I decided to ditch the Bossilator and do the opposite, sell. Price jumped up to the previous support level and I thought that would be a good opportunity to short, in case there was a freefall. I didn’t want to be long in a market with such bearish fundamental bias.
Click above to enlarge
Again, this was a discount price and allowed me to set my stop loss on the other side of the former support level for a very small loss.
Price initially moved down and things were starting to look good. It had moved enough that I decided to move the stop down to +5 pips so no matter what happened, I could go to sleep and I would almost be guaranteed 5 pips profit.
The markets then proceeded to go nuts. Hogs got slaughtered and stock markets everywhere went to hell in a hand basket.
But guess what? I got my 5 pips. It was only a +0.005% gain on the account but that is better than losing money.
My call on the direction was ultimately correct as you can see on the chart. However, the pain that I would have had to endure would have been substantial and I am glad that I moved my stop down to +5 pips. On to the next trade!
If you enjoyed this article, you might also like:
- May 3, 2010 – EURCAD 1H Bossilator Trade
- 1/5/08 EURCAD Trade
- 02/17/2009 EURCAD Trade
- 02/11/2009 EURCAD Trade
- 1/20/09 EURCAD Trade
Category: 
Tags: 
Twitter
Facebook
Google+
LinkedIn
RSS Updates