Entry: 1.58842
Target Profit: None
Stop Loss: 1.590950
Trailing Stop: 50Pips
Potential Loss: 60Pips
Reason for Entry: Technical - 4th Bottom ( Since 23 March 2010).
Reason for Stop Loss - risking 0.2% of the account (60pips estimated to be $6>> $6/3000*100)
Reason for Target Profit - Looking into the previous patterns there were massive increase up to 1.6684. Watch out for 1.6093 on 15 Jul 2010.
Result:
Price Stopped: 1.5909 (30/08/10)
Profit: 25Pips
Thoughts:
28/08/10 - on the 27/08, I had the urge to close it since it has already made around 76 pips. And pips were pretty much stagnant. And thus, it made an impact on my confidence that the price will decrease. I rethink about what I was going to do and decided not to. Why? Basically, I am testing my hypothesis that the price will continue to go up further to around 1.6093. If I closed the position now, this would mean that I did not fully tested my theory and I would never know the outcome/result. And, this would be a failed experiment.
The reason I did not bring my stop loss to a break even point was because the price was fluctuating around that region (Whipsaw). Thus, this would take out my position before the price makes a trend.
31/08/10 - I made a mistake. Estimated Price 1.609-1.599 played a significant resistance line. However, I ignored it because of I am testing my theory and strongly believe that I was on the right path. Lesson learned - take note all the resistance and support lines. I have used my feelings and did not support any evidence that I could ignore the resistance line. I was thinking the price could just break through easily. WHAT A MISTAKE. Maybe I was disillusioned by the profit I can make initially.
My current mental state - I am bombarding questions on whether I should close the positions. Should I look for news that could indicate the price direction? I think this would be dangerous. As I have mentioned to myself in Thoughts1 that FX is mainly technical and not fundamental.
Lesson Learned:
1) Do not change the setup - be confident with your theory. However, do not be oblivious with any major news (e.g. Nuclear war and etc..).
2) Approach FX as a technical point of view.
3) Before adjust the stop loss, observe the price range. Do not adjust it for the sake of protecting profit. The main objective is still to SPECULATE.
4) Support, Resistance and Trendlines are very important in FX trading.
Price Stopped: 1.5909 (30/08/10)
Profit: 25Pips
Thoughts:
28/08/10 - on the 27/08, I had the urge to close it since it has already made around 76 pips. And pips were pretty much stagnant. And thus, it made an impact on my confidence that the price will decrease. I rethink about what I was going to do and decided not to. Why? Basically, I am testing my hypothesis that the price will continue to go up further to around 1.6093. If I closed the position now, this would mean that I did not fully tested my theory and I would never know the outcome/result. And, this would be a failed experiment.
The reason I did not bring my stop loss to a break even point was because the price was fluctuating around that region (Whipsaw). Thus, this would take out my position before the price makes a trend.
31/08/10 - I made a mistake. Estimated Price 1.609-1.599 played a significant resistance line. However, I ignored it because of I am testing my theory and strongly believe that I was on the right path. Lesson learned - take note all the resistance and support lines. I have used my feelings and did not support any evidence that I could ignore the resistance line. I was thinking the price could just break through easily. WHAT A MISTAKE. Maybe I was disillusioned by the profit I can make initially.
My current mental state - I am bombarding questions on whether I should close the positions. Should I look for news that could indicate the price direction? I think this would be dangerous. As I have mentioned to myself in Thoughts1 that FX is mainly technical and not fundamental.
Lesson Learned:
1) Do not change the setup - be confident with your theory. However, do not be oblivious with any major news (e.g. Nuclear war and etc..).
2) Approach FX as a technical point of view.
3) Before adjust the stop loss, observe the price range. Do not adjust it for the sake of protecting profit. The main objective is still to SPECULATE.
4) Support, Resistance and Trendlines are very important in FX trading.
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