Live Trade Result – NZD/USD

Filed under: Live Trades |

 

We’re struggling a bit at the moment and are now at around breakeven for the month (a slight profit actually). We had a trade on the NZD/USD currency pair yesterday, but we had a bit of bad luck that took us out of the trade. Let me explain…

 

Figure 1.

If you take a look at Figure 1, you will see the 4-hour chart for the NZD/USD pair. What you can see here is that the pair had formed a very well defined pin bar with a long nose (if using the Pinocchio bar metaphor) at exactly a 50% Fibonacci retracement. To add confluence, the area also happened to be a strong area of support/resistance. After the close of the pin bar, I put an order in to go short at a 50% retracement of the pin bar, with a stop loss placed just a few pips above the high of the pin bar, and a split target of one and two times the risk.

 

As you can see, our stop loss has been taken out by literally one or two pips. Had it not been taken out, our first target would have been met and we would now be in a risk-free trade. Unfortunately, it seems that maybe the big institutions were gunning for stop losses on this one. One consolation is that we were right about this level holding as a good level of support/resistance. However, a loss is a loss, and that takes us back to breakeven for the month after some good work. What we need to do now is to not panic, and to stick rigidly to our methodology no matter what, as it has proved to have an edge over the course of the past year or so. I do not think that any mistakes were made on this trade, and if the same setup came along, I would do exactly the same thing. Losses are merely a part of the process.

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