February 19, 2009
By: Stephanie
The player will show in this paragraph
Our profit for the day? $131.24 Winning trades: 32 Losing Trades: 7 Net Profit = $6,111.78, up 61.1% this month so far.
Hi everyone -- I want to review our trade action from today...
As we said in our Angel Pair Picks yesterday, we entered orders for the USD/CAD and AUD/USD. Unfortunately, we moved our stops too close trying to protect our profits and got stopped out early, before the big moves. Here's what happened:
We were short USD/CAD -- We entered the market at 1.2582. The price fell just as we thought it would. But because we set our trailing stop so close, we got stopped out at 1.2575, for a profit of $110. However, the price on the pair never hit our original stop loss, and through the day had fallen as low as 1.2465, which means we could have seen a move of 120 pips. With a trailing stop of 35 pips, we could have profited by 100 pips, instead of 7 pips. Well, live and learn.
The AUD/USD worked out about the same way. We entered the market at 0.6414. The price climbed as high as 0.6520, which was more than 100 pips over our entry. However, because we had our trailing stop set too close, we got stopped out at 0.6415, making just one pip per lot on the trade.
This is why many people don't like to use trailing stops. Especially when you set them too close. You don't leave any room for the pair to breathe, and can get stopped out before it has a chance to run for better profits. On the other hand, we still made money today, and didn't take a loss. For those of you that didn't trail the stop so close, congratulations!
Our profit for the day? $131.24. As for our current stats for the month of February? Winning trades: 32 Losing Trades: 7 Net Profit = $6,111.78, up 61.1% this month so far.
Thats our trade review! Check out our Angel Pair Picks to see what we will be trading for tomorrow!
