Trade 46 & 47 – ANALYSIS and RESULTS

Filed under: Live Trades |

I can’t wait for February. There is no way to get around it – January is a stinker for trading forex this year. Trade 46 was cancelled as the order was not filled and trade 47 was yet another loser, putting us into negative territory. The good news is that even after the really bad run, we are only down 1.77%, so that is a positive and things can only get better from here really. Here is the rundown on trade 47.

 

Figure 1.

If you begin by looking at Figure 1, you will see the daily chart for the EUR/USD pair. What you will see is that price has begun to move up and gain some momentum. It moved past a previous area of support/resistance and then made a nicely formed pin bar. On the daily charts, these pin bars are usually fairly reliable so I set an order at a 50% retracement of the pin bar, set a stop loss just a few pips below the low of the move and went for a target of three times my risk, which is a risk-reward setup of 1:3, which is more than acceptable.

 

Figure 2.

The order was filled and it looked like a good trade to be in. However, if you look at Figure 2 you will see that our stop loss was unfortunately hit for yet another loss on our trading bank. There was a swing point on the chart that could act as resistance, and perhaps in hindsight; this may be an example of overtrading and trying to catch up, so I will be more wary of that in the future. But for now, here are the official results:

 

Trade 46 = cancelled

Trade 47 = – 100.08 GBP

 

Bank = 9,823 GBP (-1.77%)

 

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