hello

need some advise. i have been sitting short gbp from 1.9470 and my view was that gbp has to depreciate considering the state of economy. i have been holding this since jun 13th. and from then on, the ccy was in the opposite direction. i got scared when it crossed 2 and so i hedged my position at 2.0060. however i dint take profit on either. and now i see it coming all the way down. when it reached 1.9650 i though it might bounce again and so got rid of some position on the shorts. and now i am sitting on more losses then in the hedged state. i notice that whenever i think of doing some trade and do it, the market moves in my favor but when i actually do it it goes against. i am wondering whether i shud move out of this market.

like yesterday at 1.9650 initially i thot it will break and so dint take the position and it went all the way to 1.9715 and then came down again. so i thot i will not miss the second chance and did it second time and now it broke 1.9650 and even 1.96. this is very frustrating. is it something most of you face?

and now i am thinking since atleast i get carry on the longs i will sit on them till a bounce back to 2 handle. is it a good strategy?

please advise

hello

need some advise. i have been sitting short gbp from 1.9470 and my view was that gbp has to depreciate considering the state of economy. i have been holding this since jun 13th. and from then on, the ccy was in the opposite direction. i got scared when it crossed 2 and so i hedged my position at 2.0060. however i dint take profit on either. and now i see it coming all the way down. when it reached 1.9650 i though it might bounce again and so got rid of some position on the shorts. and now i am sitting on more losses then in the hedged state. i notice that whenever i think of doing some trade and do it, the market moves in my favor but when i actually do it it goes against. i am wondering whether i shud move out of this market.

like yesterday at 1.9650 initially i thot it will break and so dint take the position and it went all the way to 1.9715 and then came down again. so i thot i will not miss the second chance and did it second time and now it broke 1.9650 and even 1.96. this is very frustrating. is it something most of you face?

and now i am thinking since atleast i get carry on the longs i will sit on them till a bounce back to 2 handle. is it a good strategy?

please advise

hi Flguy

your right I took a hit (this now blows my best trading record, will have to tally up how many straight trades that was)

-$465.50
-$154.00
I have just booked a $660 profit so I am now $45 up for today.

just ran a trading report from the 20.07.08 and I had a run with 46 straight trades until I got caught with these two......you win some and you loose some


next up UK Data

Take what you can and give nothing back

hi vince

can you tell on the loss making trades?

btw i tried to post the following message but it is not appearing.

hello

need some advise. i have been sitting short gbp from 1.9470 and my view was that gbp has to depreciate considering the state of economy. i have been holding this since jun 13th. and from then on, the ccy was in the opposite direction. i got scared when it crossed 2 and so i hedged my position at 2.0060. however i dint take profit on either. and now i see it coming all the way down. when it reached 1.9650 i though it might bounce again and so got rid of some position on the shorts. and now i am sitting on more losses then in the hedged state. i notice that whenever i think of doing some trade and do it, the market moves in my favor but when i actually do it it goes against. i am wondering whether i shud move out of this market.

like yesterday at 1.9650 initially i thot it will break and so dint take the position and it went all the way to 1.9715 and then came down again. so i thot i will not miss the second chance and did it second time and now it broke 1.9650 and even 1.96. this is very frustrating. is it something most of you face?

and now i am thinking since atleast i get carry on the longs i will sit on them till a bounce back to 2 handle. is it a good strategy?

please advise

[quote=Vince;173725]hi Flguy

your right I took a hit (this now blows my best trading record, will have to tally up how many straight trades that was)

-$465.50
-$154.00
I have just booked a $660 profit so I am now $45 up for today.



Good morning all,
Vince...
interesting trading style....im surprised you managed to make money yesterday as the RSI didnt really get out of OS. as i see it now, its OS again..25 on the hourlies. Have you gone long again this now?
M$M

hi man.
wat were u trying to show the diagram that u attached.would u like to explain it for me
regards

Welcome to my club, except that I've been going long since the 2.0000 level. Yeap I am too getting burned, however my experience tells me that it usually comes back to you sooner or later. That is the reason that you need to trade with a good balance sheet and do not place or trade all your money at once. It is like having reserves which you do not know how and when you are going to use them.

Although I have not been trading currency for a while, I have been trading fixed income assets for many years, and if you have the cash reserves and you are willing to hold tight, the market usually comes back to you. You just need to sit tight and hold your breath.

Next time cut the loss quickly, that's what Stop Loss is for, rather than waiting for 500 pip going against you and locking the 500 pip loss by hedging.

Hi
i was showing that there was divergence on the hourly chart, price was at the bottom of the channel and also hourlies were oversold.
There is a simple explanantion here:

Divergence Cheat Sheet | College: Trading Divergences | Learn Forex Trading
It didnt actually work out yesterday, luckily i added another position to lower my average and got out with a small profit overall before it dropped.
Hope it helps
M$M

Hi upadrasta,

Its really sad to know about your lon long trade and I can easily understand your situation as I did that mistake in last 2 years while waiting to recover my losses. Then I closed all my position booked looses and reviewd by trading technique which was small profit, take it and run. But when in loss just wait and wait before everything is gone. Now if the situation goes against me just cut losses short, take a breath and look for better opportunity. Also if you have suffered a loss in any pair best is not to add any new position to minimise/ecover losses as it rarely happens. So its time to become wise, sit back, relax, learn from experts in these forums. I can tell you my personal experience that just in last 2.5 months by following the recommendation/reviews in these forums I have recovered all my losses incurred in last 12 months. Good Luck

thanks all for the advise. hope i can recover my losses.

so are we going to 1.9335 on gbp soon? is there a good possiblity of then bouncing towards 2.00 lvls. given the general view that gbp economy is in deep trouble, is it possible that we will not go back to the 2 levels for the next few months atleast??

my point of view at
http://www.learncurrencytrading.com/...-post4757.html

best,

A.

Hi Mate,

Everything is possible in this directionless market as things can change within minutes. Its all speculation and manipulation by big players like banks & hedge funds. A simple fact is that economy doesn't change every day or week or month, it takes years to get indo & recover from recession. So lets be realistic and join this heard or sit & wait, uncessary increasing BP with every move in market. The difference in Professional Trader and Retail (Trader) is just that professional knows how to cut his losses short while Retailer dries his bank balance!!!!

Upadrasta

I am new to this game myself but this is what I think.

When you went long at 2.006 the GBP was probably bullish (going up), no problem. However since you were at the top of the range (The GBP/USD has traded between 1.94 and 2.01 from March to present), you should have cut your losses when the GBP became bearish (going down) because it had a far way to fall before getting to the bottom of the range.

The most important thing I think is that you must have a general perspective as to whether the currency is bullish or bearish before you enter a trade and that will also help you to decide when to leave the trade. This forum is a good place to get guidance on the general direction.

Now that we are almost at the bottom of the range you can expect the pair to become bullish again at about 1.93 to 1.95. If you have good margin (plenty money) you can hold on to your buy and buy another lot as close as possible to 1.93 or whenever the pair becomes bullish again. If you get in at 1.93 your average purchase price now becomes 1.965. Once you get above this figure in the future which is more than likely you are back in business.

Careful though, once you buy another lot at 1.93 you start loosing money twice as fast if it continues to fall so you have to know where your tollerance level is.

If you don't have a good margin, get out of the long trade now and look to buy again whenever the pair becomes bullish or somewhere between 1.93 to 1.94 you will recover your 500 pips in a month or so. Get out of your shorts just before it is time to go long again.

Regarding your long at 1.9650 yesterday, until you understand the market better, don't go long if the pair is bearish (don't go against the direction of the market) You should have been looking to go short on the bounce to 1.9715 instead.

Just my opinion and remember I am new to this game.

Best of luck

Anyone trading EURGBP these days? It could be a good way to avoid the USD event risk on hand today. There's immediate support at the confluence of the 50 SMA and 100 SMA at 0.7914/18, but I think we could see price ultimately fall closer to trendline support.

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