So close! I tried to manage this trade as actively as I could but I wound up missing my profit target. If you’re wondering what I’m talking about, make sure you check out my initial AUD/JPY long setup before reading on.
I was able to catch the bounce right at the bottom of the range at 78.50 but I decided to close my position to reduce risk ahead of last week’s RBA decision. When the central bank announced no change in interest rates, I reopened my trade around 79.75. The pair seemed to have a lot of bullish momentum left even during the latter trading sessions so I decided to just keep it open, keeping my fingers crossed that it’d eventually hit my PT.
You can imagine my frustration when I checked back in my platform the next day to find out that AUD/JPY just made it up to a high of 80.30 before turning lower once more. I thought of just closing my reopened position at its 79.75 entry price but the pair just kept dropping and hit my stop at my original 78.50 entry this week. Bah!
In retrospect, I really should’ve just set my profit target below the 80.50 minor psychological mark, probably around 80.25. I guess my thinking at that time was that, with such a short-term trade and tight SL, those tiny pips would still matter and I didn’t want to leave ’em on the table. Either that or I should’ve closed early even with a tiny loss on my reopened position when I noticed that price just couldn’t break past 80.30.
But of course, as they say, hindsight is 20/20 and this one-eyed monster learned his lessons the hard way. I ended up with a 60-pip loss or a 0.13% dent on my account with this one!