Click above for larger image
There was no Monday Trade last week, but this week presented a great opportunity. The GBPCHF started well below the Weekly pivot this Monday (the start of Monday is the first vertical dashed line on the left).
I stacked my entry orders in anticipation of the move and let it rip. As you can see in the picture, price popped up and executed 4 of my orders, then broke sharply to the downside.
I finally decided to close out all orders when price dipped below the support level because it looked like price would continue to the downside.
On this trade, I lost 14.8% on the account. After I closed the trade, I felt good about closing it because the GBPCHF is a freight train and I do not want to be standing in front of it.
However, I realized that there was still an opportunity to stack a new set of orders in anticipation of another move back to the Weekly Pivot. But…
unfortunately I was too busy day trading that I forgot to restack the orders. Setting the trade up again would have been OK because price was far enough away from the target to be safe if price happened to continue to move down sharply.
I opened my screens this morning and this is what I saw:
Click above for larger image
Wham! It moved from the brink of falling off the cliff to a 252 pip blast off in 8 hours and hit the Weekly Pivot perfectly. I would have made up a good portion of my loss on the first trade if I had taken this second trade. There didn’t seem to be any news catalyst for this either.
Well, that’s the way it goes. I have learned from this experience and will put in my orders in as soon as I have the idea. There was no excuse because I can trade on my phone.
Another thing that I have learned is that it is possible to restack this trade even though it is profitable. This is something I will be implementing in the future.
Again, this is a risky strategy (disclaimer) and should be tested thoroughly before ever considering trading it live.
Hope your trading is going well!
Hugh
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