Welcome to today’s entry into my investing and trading blog. This is where I discuss what I see in various financial markets, and the actual trades that I make within them. Read on to see how this GBP/AUD short trade played out.
First off, I ran the numbers and liked them, but wasn’t 100% sure I was going to trade this. I set the order, though, so that I didn’t lose the numbers in TradingView. I planned to cancel the order if price moved significantly away from my entry, but that wasn’t the case. Here are my notes on this pair from the morning I took this trade:
This has mostly been trending up since the beginning of this month, but over the last couple days looks like it’s reversing to the downside. There was a strong push down yesterday morning, a small base throughout the day, and then another strong push down this morning.
There was a bit of a bear rally that formed this morning (as evidenced by the long lower wick on the most recent closed candle, 4h chart), with price appearing to return to the downside. It hasn’t broken the lows that were created before the rally, but it’s still heading downward. Additionally, while price is riding/pushing through the lower band, RSI has started to cross below 50 and isn’t oversold yet.
Entry – 1.9052
Stop – 1.908
Target – 1.9
R:R – 1.86
Overall, I don’t hate this to the downside, but upon first glance, the R:R isn’t there. I’ll mark this on my list/keep an eye on it to see if it moves in a way that makes me comfortable trading it.
Sticking with my ethos that the only missed trades are one’s that I do the work but don’t pull the trigger, I set the entry order here.
Entry – 1.9052
It took close to an hour, but eventually price pushed down enough to trigger my entry in to the trade.
Exit – 1.90802
Triggering my entry into the trade is essentially the lowest this got before price rallied and stopped me out for a full loss. Looking today, a few days after this trade closed, I made the same mistakes I did in my prior trades: the overall trend was up, but because the last day or so was down, I shorted it. I can’t do anything about this trade, but it’s something I’m trying to avoid from now on.
The name of the game when trading is oftentimes simply cleaning up mistakes. I wasn’t able to do that with this trade, but I’m continuing to learn and grow and adapt. Let me know in the comments what you thought of today’s trade, if you’ve noticed any glaring mistakes in your trades, and how you remedied it.
Thanks for reading, and stay tuned for more financial market analysis and trades.