Let's try another paper trade: Short EUR/JPY at 140.55, right where it is now. Stop loss at 140.65, and lets' assume a position large enough to sale out 1/2 at 140 and hold the other 1/2 for 139.15.
Out @ 140 for +55, letting the second trade stay short with a stop @ 140.30 lotto 2/3 +75 paper pips cum. The paper trading is me being neighborly, the set ups are real. I'm a stock guy, and don't trade forex. I don't even know how this stuff pays off - I'm just trading this as though I were trading shares of LNKD, BWLD, or ILMN.
Alright I closed half of my long AUD/USD. Profit = 5x initial risk. That's enough. I need my money to short more EUR. Stop of the remaining half at 9346. "I made my money by selling too soon"
No freefall happened so I just closed that again. Too much risk heading into the weekend. Will revisit next week closer to 1.38
This position triggered my stop by only 1.5 pips and THEN moved 50 pips higher in the expected direction. Oh well, things like that do happen from time to time, there is no way around this type of scenario. Total so far for me personally (since the beginning of this thread), minus 143 pips. Anyway, another week just started, so let's kick some butt!
What I don't understand, and this is directed at ET et-al, not a personal call-out, is this... why not re-enter a trade?? In this case, and I did not look at a chart, your "explanation" epitomizes this one-shot only: re-entry is not an option syndrome. This position triggered my stop by only 1.5 pips and THEN moved 50 pips higher in the expected direction. Oh well, things like that do happen from time to time, there is no way around this type of scenario. WTF!?!