USDCAD

USDCAD 24/08/10
Sell: 1.06015
Stop Loss: 1.06279
Target: 0.99593
Trailling Stop: 10.5 pips

Profit Target = 642 pips
Stop Loss = 26 pips

Reason Entry: Technical
it hits the top channe for the second time.
There is a very strong resistance line on 1.07083 (see 17jun07 and 7sep08)

Reason Stop loss:
I was betting that the price will not break the channel.
If I think about it again. I should have increased the stop loss to above 1.07083 (near).
Maybe around 1.0715. Reason? A stronger resistance line on 1.07083



Result:Lost around 26 pips.  The price shot back up touching the stop lost before it went down. Last night, 26/08/10, the price is currently hovering between the top of the channel and the stop loss.


My Thoughts:
I should put the stop loss a bit higher maybe 20 pips higher than the last highest point. If I did that, it would mean my risk profile would be higher.
Another way, I should wait be Freaking Patient. If it did not hit, so let it be. there will be more opportunities later on. If setup did not go my way, that would mean my hypothesis/ theory would be wrong.

One more thing to learn, Precision is needed to trade FX - i.e. placing the stop loss and entry.