Welcome to my blog! This is where I share my market moves. I talk through ll of my trades, investments, thoughts and reflections so that you can follow along, learn from and grow with me. Today, I’m talking through a short trade I took in the Forex pair EUR/USD. Read on to see how this trade played out.
EUR/USD Short
Expected Entry – 1.086 Stop Level – 1.087 Target – 1.0838 R:R – 2.2
Once again, I’m not really doing an analysis and am instead just looking through charts and putting out orders where I see fit. The first thing I see this morning is actually the first chart that I looked at. It’s Euro-Dollar, and it looks pretty bearish. This morning, price has been on a decent rally (looking at the 15 minute chart) but if I zoom out to the 4 hour, the rally doesn’t look that strong and looks like it’s well within the overall bearish pattern.
That said, though, there does appear to be a bit more upside here, so I put in a sell limit order at the lows of the key area I’m trading around and my stop at the highs. I’ve said in the past that I want to try this type of trade more often, so I’m glad I’m giving it a shot here.
Rather than waiting for the break into the direction I’m trading (and thus decreasing my profit potential because my entries are closer to my target), I’m trying to get in at the initial retest of the previous key area. If price breaks that key area meaningfully, I have my stop at the highs of that range. But if it’s a simple retest, I want to be in earlier rather than later of course.
On top of that, I’m still playing the probabilities. I just think, regardless of the difference in the probabilities of this working out vs waiting for the break, this strategy offers me much better R:Rs. And, truthfully, I don’t know if this strategy has less of a probability to work out than waiting for the break. I shouldn’t be afraid of this type of trade (like I am sometimes) and I should seek it out more often. No matter what happens with this one.
The order’s out there, though, and price is approaching my entry, so we’ll see what happens.
Entry – 1.08601
It didn’t take long. Only a couple minutes after typing the above passed when I got triggered in to this trade. Now we wait and see.
Exit – 1.087
After triggering my entry, price moved sideways for a bit, then made a push in my favor. That push only got to about 60% of 1R, though, so I didn’t move my stop.
That was the lowest price got, and from there rallied up close to my stop. It didn’t trigger right away, price hovered between my entry and stop for the rest of the day, until about 10pm when it finally pushed up enough to hit my stop loss.
IDK what to do. Overnight (only a couple hours after hitting my stop), price ultimately pushed down hard and hit my target. I was just early again. I have to take it more seriously, I need to be more consistent, and I think I need to start earlier each morning. I’m not sure how that’s going to work on WeWork days (I don’t want to start trading; stop for an hour to get ready and leave and get to the office just to pick it back up — I want to stay in the moment), but I kind of want to start trading before 7:30. Maybe get a few practice trades in just to get the ball rolling, then dive in to charts and trade.
Not sure how, though, but I’m continuing to push. Something’s gotta give.
Thanks for reading, and stay tuned for more trades.