Friday, September 28, 2012

Win on USDJPY - "Hermes"

I've conducted four trades using the "Hermes" system so far - two wins and two losses. This is an entry on my latest trade.

Over the weekend I identified an entry signal on the USDJPY, and put in a pending long and short. The short was triggered on Monday and I decided to close and take profit today (Friday).

Price lingered about 5 pips from my profit target over a two day period, which you can see on the chart above. When price hovered at the same low for two days, I felt that support was forming and closed the trade. This shaved 10% from my intended profit, and as I'm typing this entry, price broke the low and hit my original profit target.

While price lingered near my profit target, I noticed myself checking my trade every couple of hours. This constant checking made me frustrated as my profit target seemed so close, and yet so far. I think this encouraged me to close my trade early and end that negative emotion.

On the chart, you can notice two dojis that formed in the middle of the trade as the price decline slowed. They also spooked me a little. Again, I was asking myself why risk the entire trade just for 5 pips when I've already won 85-90% of my trade?

The discretionary trader inside me thinks that price will continue to fall. A short-term descending triangle was formed, and it looks like the bottom is now being broken.


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.