This USD/JPY forex trade is proof that good trade management always trumps good trade setups. Here’s what happened to my setup.
Original Forex Trade Idea: Is USD/JPY Ready to Come Back Down?
Last week I shorted USD/JPY when I saw an SMA crossover (very reliable on USD/JPY’s 1-hour chart) and a possible Fib retracement. I also mentioned that I might close my position or adjust my stops before the NFP report if the pair isn’t going anywhere.
Well, I ended up closing my position at break even just before the NFP release. I probably should have adjusted my stops instead though. USD/JPY saw a significant drop since the weak wages component of the NFP report popped up and the pair isn’t showing signs of getting back on its uptrend yet. It’s currently at 117.69, below my 118.00 initial profit target. Heck it even went to as low as 116.08 this week! Gah.
On a scale of 1-5, I’m rating my trade management a 3 on this one. I’m happy that I was able to follow my trading plan, but I could have also been more confident on my trade idea and just managed my risk during the NFP release. Look at all the pips I missed! 🙁
Oh well. Time to shrug off the miss and find another trade! What setups are you looking at? 🙂