Items Tagged With GBP/USD

I almost sold my position in the GBP/USD this morning but opted to wait.  This goes against all the principles of money management.  So I'm not proud of this and once again promise to never do this again.  Nevertheless, the Sterling has made a minor comeback in afternoon trading and I'm down 241 pips:

I set a stop on my Sterling position.  If it triggers, I'm taking the 310 pip loss like a man. 

Yet another trade has turned against me.  The FX Market is brutal.  I am discouraged but I will try to get over it and move on.  Trading can be quite rewarding and that's why I'll continue.   The British Pound beat up the dollar overnight and my stop was tripped at 1.7698 for a 50 pip loss. 

Seeing I don't want to make any rash decision before the weekend, I will keep 2 open positions into next week. The 2 positions are the following:

1. Short EUR/USD at 1.2103 (-23 PIPS)
2. Long GBP/USD at 1.7801 (-198 PIPS)

First, let me say that part of the reason I entered into the long position was because of a commentary I read from Thompson. I try not to listen to the hoopla from anyone except for me but I got sucked in this time. Make it a rule to never listen to what anyone else says. Do your own homework and I'll do mine.

My strategy for Monday is quite simple.  This is assuming the Dollar will have a clear direction on Monday. If not, I will put it off until it does. Once the direction is established, exit 1 of the 2 positions. So if the dollar is looking bearish for the day, I'll exit position 1 above. If the dollar is looking bullish, I will exit position 2. Have a good weekend.

-W

The USD is up against the majors this morning with traders awaiting a slew of data this week, with US trade on Thursday and CPI, retail sales, industrial production and business inventories on Friday.

My stop/loss of 1.7491 on my GBP/USD position was triggered at 2:00 am last night.  I lost $310 on this trade including .86 in interest. 

My USD/JPY position is still intact down about 20 pips.  I expect solid range trading between 113.75 and 114.39 until more US data is released.

The longer I trade, the more I realize that trading is best if done intermediate or long-term.  Let me site an example.  Back a couple of weeks ago, I posted that I was finally taking my losses on a trade like a man.

 
 I lost 310 pips on this trade and only stuck with it for 2-3 days.  The price of the GBP/USD today is 1.7844.  So if I had held on to that trade, I would be up 43 pips today. 

I made a trade at 2:30 a.m. this morning. I went short on the British Pound at 1.7648. After 10 seconds, the Pound started its descent to 1.7638. It's only 10 pips but I'm expecting it to continue it's descent for 2 reasons.

I just wanted to give a quick update on the state of my forex trading.  I'm clearly in a transitional state personally and trying to find the time to trade not unlike a lot of you, I'm sure.  My full-time job has moved in line with forex trading as a priority as it probably should have all along.  After all, in order to make money trading or attempt to reach that ultimate goal, you need to have money to do it.  It's certainly a lot easier collecting that paycheck every other week opposed to making that same amount of money trading.  

I'm approaching my two year anniversary of forex trading and though sometimes it doesn't seem like I've made progress, I would find it hard to believe that I haven't.  I'm a bit confused these days about my trading and not sure what to do about it yet.  I'm definitely still on the "keeping it simple" side of things and I feel the need to concentrate more of my time on risk management.  Other than that, I can't say where I'm going to be with my trading next year or even next week.

Due to these times of confusion and limited time, I'm trading a lot less and haven't traded live this month.  I'm still trading my GBP reversal strategy but there was only one opportunity so far this month (on Thursday) and I missed it.  I'll make it through these hard times like I always have.  My expectations aren't what they once were and I'm willing to crawl towards my goal because I know it can take years (if ever) to be successful as a trader. 

I hope everyone else is progressing with their trading.