Forex Trading Results 2010-07-30

This week, a new strategy was introduced. This strategy uses daily chart or 4 hour chart to take positions on currency pairs that has potential to move in certain direction. Holding period can last up to a week if required. Only 3 trades were taken resulting in one winning and 2 losing. However, this strategy requires reward/risk ration of at least 2 times before taking trade. That means, I will have less trades taken. Only 3 trades were done within a week resulting in 2 loses and 1 win. However, the winning is much larger than losing trades.



The results is net wining of about 2750. The winning trade is GBPUSD having seen the setup along the major trend and entry was made upon breaking out along with the major trend. The trade lasted more than one day but was taken off after a gain of 140 pips. That was a mistake because it eventually moved further to over 250 pips. I was expecting it to pull back but it lasted longer than expected. The lesson is to listen to the market rather than trying to anticipate based on your own idea.



At the end of the day, rules of trading is important. This is a classic case of not having clearly defined rules of trading or not following rules and let fear overcome oneself.