I seem to have a knack for turning winners into losers these days, huh? Take a look at what happened to my USD/CAD trade!
As I mentioned in my USD/CAD trade idea entry, I jumped in a long trade at market after the BOC statement turned out to be more dovish than expected. I was able to get in at 1.1100, with a stop initially set below the 1.1000 mark.
Prior to the FOMC interest rate decision, I decided to adjust my stop to entry for a risk-free trade. I managed to stay in the trade until price reached the 1.1200 area last week, but…
Traders were a tad too eager to book their profits ahead of the Chinese New Year long weekend, resulting to a sudden spike back down to my adjusted stop loss. Drats!
I guess what I learned from this trade and my AUD/USD short, which also ended up being a losing one, is that I should be gunning for smaller targets since volatility is still up these days. It’s just that I’ve gotten used to larger price moves and stronger trends for the first half of the year that I set my sights on wide profit targets. Lesson learned!
Any other thoughts on how I could’ve played this trade better?
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