As I mentioned last night, I had gone long on the GBPJPY at 174.21 with a 50 pip stop loss and a 45 pip trailing stop. I had correctly picked the right direction and the market went up…. my trailing stop went up also to capture profits. The market hit a short term peak at 175.00 before it started to fall and caught my stoploss which at this time has moved to 174.58 netting me 37 pips. This was quite annoying as at 175.00 it was a 79 pip profit. Then, not soon after hitting my stop, the market continued it’s direction upwards to hit 172.20. Well, a profit is a profit… I still can’t decide in my head what to do for futures sake however…

The current thoughts which are playing my mind are:

1. Enter a trade with a trailing stoploss and no profit target. This will allow me to know my maximum loss plus the trailing stop will allow me to capture profits and keep myself in for potential large moves. The trailing stop will allow me to at least capture some profits (or eliminate losses) as the trade goes my way. This is what I did in this case and my trailing stop got me out of the trade.

2. Enter a trade with a predefined stoploss and a predefined limit stop (usually 2 x stop distance). This means that I will know my maximum loss and profit. If the market goes my way, I will profit but miss out on potential moves.

I have been thinking about the mixture of the two.. enter two lots.. both say with a 50 point stop. One of the lots takes a profit at 2 x stoploss and the other lot is moved to breakeven should it reach 50 points or so and then I just run a trailing stop…  I don’t have the guts yet to go double my current lot size but this may eliminate the worst bits of both trading methods.

Anyway, here was the chart showing my entry and exit.

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I just went long GBPJPY at 174.21 with a 50 pip stop loss and a 45 pip trailing stop.. the market has come off pretty strongly and I am expecting a countertrend bounce as the market seems to have found a temporary bottom between 173.60 and 174.00.. the over trend is down however so this is quite a risky trade. However, if the market does move up, I am expecting quite a handsome reward (that’s if I can hold onto the trade!)

Tags: day trade, day trader, daytrade, daytrader, financial trader, gbpjpy, going long, makemesomemoney, spreadbet blog, spreadbetting blog, trader, Trading, trading blog

I can’t believe it, the DOW made over 900 points in todays trading session, a gain of over 11%!! WOW, this is the biggest ever one day gain I have ever seen! Sometimes I wish I had the capital to trade these markets.. this would have been a serious payday.

The past week, we had seen the biggest drop on the US and UK (and probably other markets but I only primarily follow the UK and US markets).

I hope this stabilises the markets and that we see further upside.. however, it is possible that this is just a reactionary bounce before further downside.. afterall, the markets have fallen extremely sharply of late and hence oversold.. people were expecting a correction at some stage and this is it… we’ll see…

Tags: 11% dow, 936 points, biggest day gain, biggest gain, dow, dow gains, dow jones, make me some money, makemesomemoney, money, stock market, us stock market