So here we are. The first trade I have entered with my new blog. Such a proud moment.
So, in all honesty I entered the trade a bit early at 80.144 and perhaps a bit cocky as well. All criteria is going to possibly hit and with all indicators pointing in that direction, I entered. The AUD has been pretty bullish as of late, but since it is paired with JPY, big moves are easily possible. The resistance to move further upwards hasn’t been hit since mid July, so my stop is located at -30 where my limit is right below the latest swing/support at +55. Not exactly 2:1 but I felt it was a good spot since it was right above the .50 line. I am going to be watching the SSD for the next few hours pretty closely to see if I need to exit this trade early.
No big news is coming out today so I have nothing to worry about there. I only risked .58% of my total account, leaving me room to play with another entry or so today.
UPDATE: So, I freaked out and closed my position after reading that the Aussie should strengthen even more after yesterdays positive CPI news. After I closed a -12.5 loss, I waited until price came back down to my previous entry. Looking back, makes no sense as I am around +38 (so +25.5) pips on this trade.
I broke my own trading rules to let the trade breath because of news that came out YESTERDAY. Pretty stupid on my part if you really think of it. From every article I have ever read about trading FX is that you cannot trade with emotions. Let the trade breath before making any rash decisions is what I learned.
I closed my open position at 79.918 which made a total of 21.9 pips; all in a all a gain of 9.4 pips for the day. Definitely better than losing on both trades, thats for sure.
However, what really gets me pissed is I followed my rules (the second time around) and I was up nearly 44 pips and thought about closing at that time but wanted to see how long this ride was going to last. Little did I know it, another small retracement took place and brought me back to just a few pips before it would close due to my trailing stop loss. So, as fate would have it and I was checking before bed, the 5 and 10 crossed, so I exited. What sucks is that the bearish ways continued until my previous limit of 55 pips. Ugh.
Not sure how I take this lesson of closing early. Lines were crossing and all indicators were reversing. Oh well, still ended up at a positive for the day!