My short-term swing short on GBP/USD closed on Tuesday, not necessarily on trade invalidation, but probably on too aggressive risk management. Here’s my review.
As mentioned in my last update, I was ready to get out of the trade ahead of the major economic data points coming up this week, which is what lead me to be a little bit over aggressive with my stop adjustment ahead of what turned out to be U.K. construction data but spike up in Sterling. Because of that, I wasn’t able to weather the short-term volatility and was taken out at break-even (1.6770).
Total: 0 pips
The pair moved lower on Wednesday to hit 1.6700 which would have been a 1:1 R:R, and in this low volatility environment I would have been happy with that. But because I already had my mind set on getting out, the extra tight trailing stop was probably a mistake. Stop management is definitely an art more than a science, and it looks like I still have a long, long way to go to mastering that skill.
Anyways, that’s it for me for now as we’ll get the ECB and BOE monetary policy decisions today and NFP tomorrow. I’ll sit back and see what we get from those events, re-evaluate and then prep some new trade ideas for June. Stay tuned!