Welcome to my blog! This is where I share my opinion on various Forex pairs, and talk through the trades that I actually make. This morning, I took a short trade in the pair Kiwi-Dollar; read on to see how this one played out.
NZD/USD Short
Expected Entry – 0.6145 Stop Level – 0.6155 Target – 0.612 R:R – 2.5
Before I set the entry order here, there’s something I want to point out. I’m running the numbers, and with my original stop, I’m looking at a 1.7R:R — 15 pip risk 25 pip reward. I can drop my stop level to the lows of the prior key area (the support level) rather than the highs (the resistance area); which would give me a 10 pip risk and take my R:R to 2.5.
That would mean that on this rally, price pushed up above my stop. When that happens, I typically cancel my order, so I’m not sure I should put it in, in the first place right now. I have run the numbers, I do like the direction, and the pattern is largely there, so I think I’ll take the risk. I can always cancel the order if price takes too long to trigger.
Entry – 0.61450
Price made a strong drop and pushed to about 5 pips in profit (which was also .5R). It looked really good (my AUD/USD trade pushed down strong, too, so I was feeling confident about these trades).
Shortly after that push, though, price rallied almost as strong and got to within a couple pips of stopping me out. Price held, though, and eventually, it made another push down, reaching about .6R (or 6 pips of profit). I was nervous about the prior rally, so I decided to lock in profits at that point.
Exit – 0.61454
That was the most this did, though, as price rallied shortly after and stopped me out at break even. Not too upset about this one. And I’m actually glad I stayed to manage it and lock in profits (well, lock in a non-loss) because I wasn’t incredibly happy about my stop level initially.
Overall, this was an okay trade. I liked how I ultimately handled/managed it; but it’s also one that looked really good, but ended up meh. IDK what to do if I’m not getting big wins when price triggers my entry that fast and pushes that deep that quickly. That’s why I need to get into more trades, though, because there should be 1 or 2 big wins for every 4 or 5 break-evens/small losses.
I didn’t take a bath on this, so that’s good; and I’m monitoring my trade in the other pair, so I’m just going to move on from this one.
Thanks for reading. Let me know in the comments what you thought about today’s trade, and/or if you made a better one. Stay tuned for more trades!