If you’re happy and you know it claps your hands! Clap, clap!
I was able to hit my profit target and walk away with a respectable 0.86% profit!
After that breakeven trade in EUR/USD, coming out with a win sure does feel great!
Now, now, I don’t want to get too excited. In retrospect, I believe I could’ve walked away with an even bigger win if I was more aggressive.
I could’ve had a better reward-to-risk ratio if I had a tighter stop and added to my already-winning position! I’ll do better next time, I promise.
Here’s a brief rundown of what happened:
Closed half at 1.6107: +61 pips
Closed the other half at 1.6150: +104 pips
Total gain: +165 pips / +0.86%
Thanks to positive reports from the U.K. and a little bit of risk appetite, my buy order on Cable was triggered.
So yeah, I guess that means I’m gonna root for the pound now, even if Prince William didn’t change his mind and decide to marry me instead. -tear-
Anyway, back to my trade.
There are still a lot of event risks on the forex economic calendar. Aside from the housing report from the U.K. that I mentioned in my blog post yesterday, I also feel a little bit scared that the Irish stress test results would spark risk aversion.
So, instead of holding on to my trade all the way to my profit target, I decided to play it safe and close half my position at 1.6107.
To make my trade even safer, I moved the stop of my remaining position to my entry point. That way, I’ll be assured that no matter what happens, my trade won’t turn into a loser and I walk away with a profit!
Just to make things clearer, here’s a recap of what I did:
- Went long GBP/USD at 1.6046 with the pt at 1.6150 and the stop loss at 1.5950
- Closed half my position at 1.6107
- Moved stop to 1.6050 while still gunning for 1.6150
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