Comments on GBP/USD trade I entered.

This is a live trade I just entered, 10k each. Maximum loss is $20.00, maximum gain is $20.00. Hoping for a strong move in 1 direction for a $10.00 gain, then cancel the unfilled order.


* GBP/USD presently at 1.7600.
* 5 pip spread.
* Enter to buy at 1.7625, stop at 1.7615, limit at 1.7635.
* Enter to sell at 1.7575, stop at 1.7585, limit at 1.7565.
* Time entered 6:27pm EST.

I will update once trade is closed. Anything I missed?

 

comments?

good boy, UG.

ts

 

What plans do you have for the cash if you make the whole $20?

 

Short position got taken out at $10.00 loss. Came within 3 pips (+ $7.00) of limit, close but no cigar. With a 5 pip spread and - 10 pip stop not much room for position to breath once open. Long position still on the books.

This is a good sort of trade to enter and then go do something else. Just need more momentum in 1 direction.

 

losing feels good, doesn't it?

at this rate, you can trade for 50 years - just get chopped to pieces slowly.

 

Only $10.00.

I have never entered this sort of trade before. I didn't think you could enter a trade to be executed at a certain price, until it was pointed out by another poster.

 

* The short position got taken out within 3 pips of limit.
* Then the long position also got taken out within 3 pips of the limit.
* Total loss $20.00.


The orginal spread of entry for both legs was 25 pips but the momentum wasn't enough for that extra 10 pips before a retrace though the stops.

Looking back it looks like the stops were set too tight. As of this time the GBP/USD is at 1.7530.

 

1/4 tank of gas.

 

That's today. By tomorrow, it'll probably only be 1/5 of a tank of gas.

 

You've mentioned that your dealer's GBP/USD spread is 5 pips. Therefore, by placing this type of +/-10 trade, you are effectively making a very short-term bet on price action. A bet that, once your entry is triggered, cable will move 15 pips in your favor before it moves just 5 pips against you. Unless you can consistently achieve accuracy of over 75%, generally that's not the kind of trading strategy you want to pursue.

Further, given routine cable price action and sub-hourly volatility, achieving such high degree of accuracy on the shorter time frames is going to be a mission impossible, in my view. That's really playing with noise, not signal.