Friday 5th September
Another trade that was difficult to watch this morning. We had a buy trade on the GBP/USD which, as you probably know, is tricky at the moment with the pound nose diving down to the 1.75’s from 2.00 at the beginning of August. The trend is very much down so obviously sell trades are more likely to be winners and buy trades seem to be, well, more risky! Still, we got loads of buy signals on Tufxp on the 10 minute chart and a qualifying buy signal on both the 5 and 10 minute charts using my settings so I took it and watched the IG Index balance go up and down like a Syrian Empire for a couple of hours. I was also concerned because the EUR/USD was going down as we were going up and they usually copy each other so I was expecting my trade to turn sour at any minute. Instead the EUR/USD did a turnabout adding more confidence to the rally for a while before turning down again and looking like it was going to dive.
There was a news release on the EUR due at 11.00am so just before 11am I decided to cash in my chips for 26 pips profit. I’ve not done this before but I’ve lost my profit far too much recently and didn’t want to risk losing this as well. I’ve been chatting with other readers about changing my exit strategy and I think I will definitely review this over the next few weeks.
Anyway, today my descision was the right one. The news release saw the pound dive and hit the stop in Tufxp so had I stayed in I would have had a repeat of Mondays fun of losing all my profit. The stop, again, was just at the draweven point so I would not have actually lost money but I wouldn’t have enjoyed it one bit.
A 42 pip profit on the week is still repectable I think but hopefully next week will pick up again. I will have a think about exit stratergies over the weekend and see what I can come up with for next week.