Thursday, July 30, 2009

Getting out when things are not working as planned


Got out of the EUR.USD trade at BE. The pair stalled at the 1st area of trouble, which I only realized after I was already in the trade.


Obviously the momentum was not enough to push thru this minor resistance points, so I made a decision to get out with my initial capital still intact.


Note that the rejection was almost to the pip at the bar lows. If I had simply target the lows as my Take Profit place, my order may still not get filled due to spread.


This would be especially true for those exotic pairs that have wild spread, and tis could be costly to me.


I have now made some changes to my spreadsheet column to include this considerations when calculating TP points.

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