You know those times when you’re in a toxic relationship and you know you should get out but just couldn’t until it was too late? Well, that hasn’t happened to me in real life (thank goodness!) but that’s how I feel about this GBP/USD trade.
Simply put, I held on to this long position for too long. If you remember, I entered at a break above the 1.7000 area and adjusted my stop loss to break even as soon as my trade was ahead by 130 pips.
The problem is when I decided to shrug off the consecutive reports that slowly weighed on the pound. Weaker manufacturing and trade data? No problem. Carney backpedals and is now not too sure about the BOE’s rate hike schedule? It’s okay, the jobs numbers are still strong. Geopolitical concerns are weighing on risk appetite? Temporary. GBP/USD is having trouble breaking above 1.7160? Probably just the bulls resting for a bit.
What I didn’t see is that even though these reports didn’t cause megamoves across the pound pairs, they were enough to slowly drag the pound below significant technical levels. I was too confident on the currency’s medium-term outlook that I “stuck to the plan” and ended up giving up my unrealized profits. I now have a break-even trade instead of a decent winner from a few weeks back. *Sigh*
Lesson learned! I really should stick to swing trades. At the very least I should evaluate all major reports and determine its potential impact on my trades. No more shrugging off tier 1 reports! 🙂
Hope you’re having a good trading week!