Friday, March 23, 2012

23 March 2012 - minor win on silver


This was quite a frustrating trade. An inside bar formed in what I'd call the "golden zone", an area just beyond support/resistance. It's my thinking that inside bars are best traded here as continuation signals.

Price moved to within a few pips of my TP target before reversing. Once price reversed 60%, I decided to close the trade and walk away with a minor win. I wasn't psychologically prepared to watch a winning trade turn into a potential loser. All up, made a 37% return on my trade.

I know this is a violation of my "staying faithful" policy, but now I feel like ditching it. If the market is telling you something, you need to listen. A few pinbars formed on other currency pairs suggested a high likelihood of a reversal, which compelled me to close my trade.

One thing to note is a possible improvement in placing my TP. I had set a hard TP target of 31.000. Price moved to 31.02 before reversing. 31.000 is a significant psychological benchmark and I should have moved my TP some distance before this, perhaps 31.05 or 31.07. When placing TP and SL, pay closer attention to whole numbers.

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