There was some encouraging economic news for the UK overnight, but a trade setup for a GBP short followed – for those that were patient.
An issue that arises for traders is… we have other obligations and need to leave our trading desks. I had not reached my target by the time I needed to go out today, so I had a decision to make. Do I take my profits now or tighten up my stop and hope that the market will move down to my target? It’s never a good idea to get greedy. There’s an old Wall Street adage that goes…”pigs get fat but hogs get slaughtered”. I did not want to risk more pips than I was still trying to gain, so I closed the trade. If you’ve made money with a good trade and have to go out – take your profits or use a really tight stop to avoid giving it back. The market will always be there tomorrow.
With the first 2 days of the week having tighter ranges than usual, look for a more active market as the week continues. Be patient and only trade when the setups present themselves.
Good luck in your trading!
Questions are always welcomed!
Michael
Good luck with your trading!
Filed Under: Forex Tips