Ack! Stopped out on a pullback! But hey, this ain’t so bad for a poorly timed trade that I patiently held on to until it turned positive.
Short GBP/JPY Trade
In my defense, I hopped in short at what appeared to be a long-term head and shoulders breakdown, before soon realizing that price was consolidating in a triangle.
I know, I know… There were several chances for me to cut my position and just open another one at a much better price, but I hesitated for so many reasons. Instead, I kept my fingers crossed that a breakdown would happen… and it did!
In my earlier update, I mentioned rolling my stop down in order to protect some of my gains. I adjusted it just past the 142.00 handle, thinking that the short-term pullback was already over and that the slide would resume.
The slide resumed all right, but not after a slightly higher correction that was just enough to hit my stop loss. It’s all good, though, as I was still able to catch 250 pips on this play.
Of course looking at price action now does make me wish I was able to stay in the short position and close out at a better price. Anyway, here’s what I ended up with:
P/L: +250 pips / +0.22%
While the pip gains look hella good, I only scored a meager percentage win on this one because of a really wide stop. I could think of a number of ways I could’ve cashed in on this short pound bias, but we haven’t got all day. How would you have played this?
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