Pages

Wednesday, 26 January 2011

Trade 4

GBP/USD

I placed this trade hoping to turn a fast buck before the weekend.The trade was placed using 4hourly stochastics and MACD which showed a resurgence in the uptrend.The trade wasn't placed with the correct price per point.

Trade direction: Long
Stop loss:1.5820
Target price for exit:1.6000 
Distance between stop and target: 180
Distance between stop and target/ 4: 45
Potential loss(risk):  £50
Actual Entry point: 1.5865
Trade size (£ per point) :£1

Comment: I didn't feel at all comfortable with the trade and kept having doubts because the FOMC rate decision will be announced today.Hence following the saying "when in doubt,get out" i closed the trade for a £10 loss.One thing i also noticed was that the trades had a high success probability if the daily and the 4hourly stochastic where in the same phase i.e either both in up or downtrend phase.

Verdict: no loot.

No comments:

Post a Comment