Straight line move strategy II GBPJPY Well to say the least Friday’s move was a surprise. I mean back to back multiple hundred pip moves, WOW!
The market is never wrong! So yes, why not such a moving pattern? Why not another day or two like the last. It’s all possible.
Well here is how I took the challenge. And here is another Forex Trading Snack.
Just because you lose a trade and take a losses, it just isn’t time to throwaway the strategy just yet. I would hope your strategy or trading plans would have some statistical statistics behind the plan in the first place.
When the odds are in your favor and the trade isn’t working, what does your personality say to do? Mine says play the odds.
This weeks open and boom! Straight from the start and the pair couldn’t push higher. What can not go higher must go the other way. I took the short play again. Just a bit lighter in size. A bit tighter of stops... You see on Friday’s trade I took a bigger size thinking the move was very large and in a straight line higher, yet the market kept squeezing higher, ending the day at the highs. My question all weekend was...
How many people trading to the short side are left in the trade?
On the flip side, how many more traders are looking to buy still more driving price higher?
It is just this kind of thinking that has everyone on edge a bit with their risk capital, and which side would have better odds in setting up new positions.
My strategy from the onset has been one born of which side has the better odds of moving In that one direction. After day one’s oversized move the odds were tilting ever more towards a reversal with every pip higher it moved.
That was the mindset behind the trade and how it was setTing up at this new weeks open. So I took the same trade again, just smaller is size so it would be less of having a farther risk of loss. But I also took profits faster then usual.
So with a profit of 120 i was all the way out. I mean, I took a 100 pip loss on Friday, just makes sense to take a break even or a slight profit and set out and see where the market wants go from here.
The trade was get short at 137.60 and I got out at 136.40
Taking a 120 pip gain.
It’s not perfect or even a trading idea of perfection. It’s just playing the odds with every trading idea. Good traders trade the odds and are consistently adjusting for the ever changing odds of the markets moves. This is always my goal, to improve myself in odds making and the markets moves.
Here is the landscape view.
If you trade, the risk of loss is all yours.
If you trade you either make dust or you will eat dust.
All the best my trading warriors.
