Why it’s Important to be Consistent Trading. My Trading Results for the Week

This week we had two trades.. AUDUSD long and EURJPY long. I’ll go through both of these and why I entered.

Firstly AUDUSD

Long AUDUSD

Long AUDUSD

I went long here as the market had found a base.. it had retraced after a move up and I thought it would actually move above the previous resistance point at around 10600 and if it did, a huge move above. The following day, the market indeed shot up and if I was cautious and doing my usual thing, I would have closed out for a 50 pip profit. However, I know that one of my problems is that I always close too early so I thought I’d hold out for the big profits. The following day when the market dwindled a bit, I moved my stop to breakeven to still give the trade some room to move up.. however, the following day the market fell lower and I ended up with a scratch trade.

Obviously, my old style trading would have netted me 50 pips so it’s rather annoying but at least we didn’t end up with a loss.

The second trade was the EURJPY long:

Long EURJPY

Long EURJPY

This trade was similar to the reasons why I had entered long AUDUSD… a pullback trade in the direction of the trade (long). There was a daily pinbar also which was more reason to enter the trade. Because of AUDUSD, I actually set my stop just below the previous resistance at 12000 (a bit round number where the market clearly had problems moving beyond). The following day, the market shot up and I got my 170 pips! However, as you can see from the price action.. the market did infact, break above resistance and flew.. ┬áit reached a high of 12276 which if I was still in the trade, a 450 pip move!

So, what I had done was to use my new method of closing out for AUDUSD and because of what happened, resorted back to the old way of closing out EURJPY… I was completely inconsistent which signifies work that I need work on for myself.

The thing is, if I closed both trades using my old methods.. I actually would be 220 pips up for the week and if I actually closed both trades with the new method, I would be 450 pips up. These are both higher than what I ended up with! The key to trading therefore is CONSISTENCY!!!!

 

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Category: Forex trader, Forex trading, Trading