5/28/2008 - I opened 20 mini long position on EUR/USD at 1.56534. Noticing the fact and instead of closing my position,
I hedged the position by going short 20 lots at 1.56328 which is going in the direction of the trend hoping the bounce of
the retacement will close my long poistion. Hopping! what was I thinking?
5/29/2008 - EUR moved down to 1.5500 and I closed 15 of my long positions at 1.55233 taking a loss of $1950, I placed my stop on shorts at 1.55328
and got called out for $2000 profit. Leaving me with 5 mini lots long with 130 pip loss .
Here is how stategy played out... (trend is still down)
5/29/2008 11:00PM PST (GMT-8) spot price 1.5523 - loss $640
5/29/2008 - Short 10 mini just after Germany Retail Sales... 23 pips profit
$230 closed one long position at 1.5512 $180 loss
5/30/2008 - long 10 mini after CPI Flash Estimate 20 pips profit ...
$200 profit closed 2 more mini @ 1.5555 $250 loss
5/30/2008 - sell 10 mini 1.5527 after it failed the 23.6 fib level, 1.5550 20 pips profit
$200 profit closed 2 lots for $185 loss
Walked away with zero loss, net $15 profit!
Thanks to Johan's help
Hedging technigue in play after reading the trend incorrectly
Linear Mode
