Welcome to my trading blog. This is where I share my thoughts on the Forex market and talk through the trades that I make. Today, I’m talking through a short trade I made in the Forex pair Euro-Yen. Read on to see how it went!
EUR/JPY Short
Expected Entry – 158.35 Stop Level – 158.62 Target – 157.8 R:R – 2
I did it; I pulled the trigger on the EUR/JPY trade coming off of the highs/resistance area that it tested multiple times. I didn’t trade a pattern, either, I saw that price was pushing down, so I did a market order, with my stop being above the highs (plus the spread).
Entry – 158.349
This is something that I’ve been wanting to practice, so I’m happy I pulled the trigger here, regardless of how this trade plays out. Hopefully it’s great, and it gives me another strategy to add to my bag.
After entering the trade, things looked good for a while, Price started pushing in my favor a bit. After a few minutes, there was a bit of a rally, but it appeared to be stalling near my entry, so I was still happy with it. I largely finished working for the day; and was just monitoring this trade, so I left the charts open and kept my eye on it while I did some other things around the house.
Price made another push down, and got somewhat close to 1R; and I started debating internally whether I should lock in profits or not. I took too long to decide, and when I actually sat down at the chart to make the decision, price was back up near my entry.
Exit – 158.621
I continued watching for a bit, but as the day went on, price continued to rise. The trade was against me about .5R, so I figured from there price would either make the strong drop in my favor, or I’d be stopped out for a full loss — but either way, there was no point in just watching so I closed the computer. Around 7:00, I checked my phone and had a notification from a few minutes earlier saying I was stopped out of the trade for a full loss.
Conclusion
There’s a decent amount to take away from this trade. For one, while it isn’t in my defined rules, it is a strategy I want to practice. So from that perspective, it wasn’t too bad of a trade. I will say, though, that the preceding movement was decidedly up, so shorting this was definitely counter-trend; but I was playing the range here, and I was well aware beforehand. It wasn’t a mistake, I knew exactly what I was doing.
That said, maybe (especially with new or counter-trend strategies) I need to be a bit more aggressive about locking in profits. If I had moved my stop loss when I first thought about it here, this would have been a break even trade, not a loss. I should probably be more aggressive about locking in profits anyway, but definitely when I’m doing something technically outside of my parameters. Also, maybe I should write out a full strategy for this play, rather than just taking the trades relatively arbitrarily.
Overall, I’m glad I took this trade, and have a couple of things to work on within it. After this one, I actually feel a bit more confident about adding this strategy to my repertoire.
Thanks for reading! What did you think of today’s trade? Let me know in the comments below. And stay tuned for more Forex trades and analysis.