I took a short on the CAD/JPY a bit ago and it's doing nice it's up by 350 pips right now and I think we are going to see a bit more downside given the recent price action on CAD against USD - GBP - AUDI'm short for now and I'm up 350 + pips - for now.
I have lowered the stop to lock in 100 pips profit and will wait to see if it heads lower. Why would I do that instead of closing and taking the profits right now! ARGH!
If that is what you want to do that's what you do in the market. I prefer to stay in for the long haul as it nets a lot more pips!
This gain is nothing to sneeze at but if you are trying to practise the risk reward ratio rule than your not quite there with 200 pips risked and only 350 gained - This is when that rule cancels itself!!!
I like to trade for the long haul but I'm NEVER willing to let a winning trade turn into a losing trade! When it becomes profitable - I lock it in to be profitable! NEVER do otherwise! Who cares if you coulda made 300 pips instead of 100!!! More often than not closing a trade to take those 300 pips is often much too early to close!
I think my trading style sorta helps confirm this fact - At least in these current market conditions.
Remember always You WILL lose pips! The Key is to Know where the price is! If you lose a bit and gain like we have been the wins FAR exceed the losses!
Cheers and Good Spotting!
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good advice. What do you think of AUD/USD, USD/JPY, and EUR/USD
ReplyDeletei see longs brewing for all of those, especially the first two.
i don't know of any event risk coming up for those pairs so i might be completely wrong, but the weekly charts look good.
Can you post some photo's of your studies Jim? it would be good to see them and offer any advice.
ReplyDeleteI think EUR/USD will head back to the lows but I think it will not go as low making a higher low than before.
AUD/USD i feel is long brewing but it's to noisy right now and not much confirmation is showing of this thought - My play would be to wait for the best possible price before I enter a long - I do agree that for me I'm long on that pair just not at this price yet - UNLESS the 70's hold
USD/JPY I feel is headed lower to the recently seen lows - in fact ALL the yen pairs are at the channel highs and will maybe head back to the bottom of the channel - EUR/YEN being one I'm watching I have taken a long at 121 - It's a risky one though and I will most likely lose my pips to a stop loss.