This week I was really proud of this trade. Not just because it was profitable and ended the week well, but because of the lessons learned along the way.
This week I officially added a new system to my strategy portfolio. This system is a breakout system, focusing on catching large moves in the market, and keeping a tight stop in case the trade goes wrong. I've been testing this system for a few weeks now and backtested it rather extensively - and the results seem pretty solid!
So for this week, I took my first few trades. I took 2 trades initially, both of which stopped out for -$100 each. Then this trade came along...
USD/CHF was trading lower throughout the day, and I wanted a piece of the action. I set my sell stop order, thinking that if price was to break this significant low, we could see price slip lower. Sure enough, the order was triggered, and the trade was on.
USD/CHF slipped further and further down, quickly recovering the two previous losses. Once the trade had gone in my favor, as part of the strategy, I moved my stop to break even. From there, I let the trade run.
After a few more hours, USD/CHF had closed for a huge profit of over $600, and the breakout was successful.
The moral of the story though is that taking 1 winner and 2 losses can be psychologically stressful - especially when there are even more losses in a row. But, by letting the winners run and keeping your risk managed, there seems to be some really great opportunities out there.
This morning at 8:30 am Eastern Time, the United States’ Bureau of Economic Analysis released even more bullish USD news. The Core Personal Consumption Expenditures (PCE) Price Index, which measures changes in prices for consumers (excluding volatile food and energy prices), rose more than expected month-over-month. A 0.5% increase was expected for August, with 0.6% […]
A strange series of events recently sent the United Kingdom’s Pound Sterling tumbling to historic lows. Just weeks after the death of Queen Elizabeth II (a head of state who was uniquely well-liked among the UK’s population by contemporary standards) Kwasi Kwarteng, Britain’s new chancellor in recently appointed Prime Minister Liz Truss’ administration, issued a […]
Last week’s selloff was brutal for investors in the US stock market: the Dow Jones Industrial Average closed at its lowest level since late 2020, falling to 29590.41, losing 1.6% on Friday alone. With the S&P 500 currently down a whopping 23% from January’s highs this year, and other indexes close behind percentagewise, stock market […]
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