There were entry signals for this pair. Firstly, the short GMA showed compression but the long GMA was still well separated and trending down. Secondly, the pair failed to break the Weekly Pivot and the stochastic has crossed lower.
The trade has a good risk reward ratio as the stop loss is rather small for a swing trade (<100 pips).
The US stock market had a blood bath and EUR just went stronger. I began to have a bad vibe that I am wrong with this trade as the other trades were moving into larger profits following the stock market decline. I was tempted to close the trade and take the small profit. But as I hesitated, the pair turned into a small loss and decided to follow with the initial plan and get out at the stop loss level (hoping that it would not trigger).
It is true that it is harder to take a loss than a profit. Human nature in play.
Sold 1 mini contract at 1.2345 on 20 May 10.
Bought 1 mini contract at 1.2439 on 20 May 10.
Loss = -94pips
You may also like:
- EURUSD (Short) – closed on 2 Mar 10
- EURUSD (long) – closed on 28 Dec 09
- AUDUSD (Long) – closed on 18 Mar 10
- EURJPY – closed on 17 May 10
- AUDUSD (short) – closed on 29 Jan 10
- USDCAD – closed on 4 May 10
- USDCHF (short) – closed on 4 Dec 09
- USDCHF (Long) – closed on 24 Feb 10
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