February 13, 2009
By: Danelle
Our profit for the day? $1,675.23!
Happy Friday the 13th! Did that hurt our trades? Let's review our trade action from today and find out...
We were long USD/JPY. As expected, the price went up. Unfortunately, we trailed a stop a little too close. The closing price of the pair was 91.95, but because of our relatively close trailing stop, we were stopped out at 90.94. We missed out on another hundred pips per lot, but we still made over $400 in the trade.
Our USD/CAD pair did drop as our trading method predicted. But once again, we trailed a stop a little too close and got stopped out early, before realizing the full potential of the profits to be had. Our stop got hit at 1.2408, for a small profit of about $175.
The 2 lots we were long on GPB/USD didn much better, as we didn't trail a stop so close. The price went up to a high of 1.4603, which was 300 pips from our open. However, our trailing stop still knocked us out early, but we still managed to pull in a profit of over $1000.
We are going to take this as a learning lesson. Our trading methods were accurate, but we altered them slightly by trailing a close stop when we shouldn't have. We did this primarily to lock in profits, but in so doing, we cut our profits a lot shorter than they could have been. The lesson here is to trust your trading method, if you have a good one. But, it never hurts to lock in profit when you can, if you think there is a good chance the trade will go against you.
Our profit for the day? $1,675.23!
