While looking for a new trade, I checked out some of the links on the BabyPips daily email Top 5 Things in Forex You Need to Know Today - February 20, 2012 with number 1 being the Trade of the Week by donnapinciotti.
Details:
GBPUSD weekly
Long or Short: SHORT
Entry Point: 1.5800
Stop Loss: 1.5950
Profit Target/s: 1.5650, 1.5500, 1.5350
Reward-to-risk Ratio: 1:1, 2:1, 3:1
Risk percentage: 1%
Indicators: Fibonacci
Trade Rationale: Theres is a falling trend line and the pair is testing the Fibonacci retracement level 61.8.
Trade Adjustments: Move stop 150 pips with every 150 pips mov
This all tied in with all of the rest of my research so decided to enter the market;
Sell entry at 1.57803 with a stop at 1.5830 and a target of 1.5650 (donnapinciotti's first target). Amazingly my timing was good as before liong the price dropped dramatically. So I moved my stop to a zero loss level and went to bed.
7:00am Thursday morning NZ. Woke to find that I'd been stopped out on trade 9, but this trade had hit the target and triggered a buy. +$122.03 profit, 7 Wins / 3 Losses, Balance $466.96. Thanks Donna!
Just over a week of trading and up 130%. What I have to be careful of is that this could be beginners luck and not to make any rash decisions with out fully exploring each trade.
On Wednesday February 22nd, 2012 at 11:20AM by Brad - Like - 0 People
I don't trade using the weekly charts, but this is a nice trade. Setting your stop loss to 1.5830 is safely above the even number, which is a nice idea. What the heck is your risk level to have made 130 percent? That is the only thing I would be a little cautious about. Overrisking can make a lot, but it can also lose a lot more.
On Wednesday February 22nd, 2012 at 11:27AM by Kiwi_PipSqueak - Like - 0 People
Hi Brad. Thanks for the comment. As I have only a $200 pot of money my risk for each trade started at 50% which is absolute lunacy. I'm trading mini's as if I started on a micro I'd be here for ever. You can see the trades I've made so far and because my risk level is so high I often manually pull a trade to minimise losses. I don't like doing it and doesnt follow my plan of commitment to the resaerch I do before each trade, but at least I'm still in the game! Thanks
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