GBPAUD 07/09/10

 

Entry Buy: 1.67534
T/Profit: N/A
Stop Loss: 1.67834
Trailing Stop: 30 Pips
Position: 0.01 Contract

Potential Loss: 30 pips
Potential Profit: N/A

Result:

Stopped at: 1.68372

Profit: 84 pips 7/09/10

Reason for Entry: Technical - Double Bottom (from 19/07/10) & there is a strong zigzag or volatility between 28/feb/10 and 11/May/10 (which I regarded as a very strong Support line).
Reason for Stop Loss - risking 0.10% of the account (30pips estimated to be $3>> $3/3000*100) (2/9/2010); The only reason is “free money for a trade” should I look at the pattern? I don’t want to get whipped lashed.
Reason for Target Profit: I am unable to formulate any reasons here because I couldn't find any. "I should have put a target nonetheless."
Reason for Trailing Stop: I have estimated for the past of couple of days that the movements are only around 100 pips. Thus I decided to do 30%-40% trailing stops according to the movements. I am still testing on this one.
Reason for position: I wasn't sure that the ZIGZAG IS A VERY STRONG SUPPORT. MAYBE I SHOULD PUT MORE CONTRACT ONCE THE ONGOING TRADE HAS VERIFIED. MAYBE ANOTHER 0.01%. I AM TRYING TO PRACTICE MY SIZE POSITIONING NOW.


Lessons
1) I should put a target profit no matter what. 
2) I need to estimate to on the movements. Since I am doing daily trades - I will only estimate a few days behind.

Thoughts:
7/9/10 - Before I set up the trade, the price had already went up at around 1.67905, I had the urge to just put the trade straight away. The reason was that I afraid I would miss the chance. However, I realised what was happening to me since this had happened many times before. I thought to myself logically, there are still many opportunities even though I have missed this one opportunity. Thus, I set it up at 1.67534, although the price had already rised a bit at that night. The next morning, I found out that my position got filled and it was in profit. I was pretty happy to what I had done. I think I have becoming more patience in trading. I have to say writing a journal really helps in trading.