Live Trade Result – GBP/USD

Filed under: Live Trades |

I had a rather disappointing trade on the GBP/USD currency pair today, and I will talk you through this trade right now.

 

Figure 1.

To begin with, take a look at Figure 1. This is a setup that we discussed yesterday, and just to recap, as you can see, the 8-day EMA is crossing above the 21-day EMA, and the pair has moved from bearish to bullish.  Price has also broken through a significant level of support/resistance, and our order was put in at the close of the pin bar that penetrates this area of support/resistance. Unfortunately, the following day, our order just missed out on being filled, and price moved up for a while before forming another pin bar, but this time a more bearish one. At this point, perhaps the opportunity had passed and in retrospect, the order should have been removed. However, I kept the order in and the stop loss, which was placed just a few pips below the low of the first pin bar, has now been hit.

 

I regard this as a trading mistake, as the second bearish pin bar told us that some bearish momentum had developed, and this should have been given more consideration. I looked at it from the context of the original setup rather than in the context of what had happened since, and this proved to be a mistake. This is probably a case of overtrading, as I felt that I had not taken many trades recently and I also wanted to get into positive territory for the month before it was over. All mistakes, and all noted for the future going forward. Luckily, this trade was only taken on my demo account (as I’m taking a break from my live account until the New Year). Had it been on my live account though, it is likely that I would have closed the trade, as trading on a demo account is very different to trading on a live account.

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