Trading last week went off pretty well, making a profit of approximately 20%. To recap, I had been following reports from Actionforex closely and making my trades decision base on the prevailing trend and resistance and support. Limiting my trade on only two currency pairs help me to maintain focus and ability to follow up. Also limiting to the maximum of having only two trades at any one time also helps in managing my account. I am still trading with a lot size of 0.05 on my mini account, though the risk of every trade maybe higher than 5% of my account, depending on the width of my Stop Loss margin. However as mentioned in my earlier post, I have my reason for doing that, it may not be considered as calculated risk but at least I am well aware of what I am getting into for every trade. As my account grow in size, I would be able to utilise the calculated lot size, but at this moment, its still not possible. If I manage to continue trading with this rate of "success", I would be able to trade at the calculated lot size by end of Jan 2010.
My analysis for one of the USDJPY traded last week, which I hope to get some comments from other traders. I made a BUY on USDJPY at 89.80 on 16 Dec 09 and had my TP and SL set at 90.75 and 88.80 respectively. As can be seen from the attached chart, the price went near my TP and came down strongly nearly hitting my SL but managed to recover after that. On the 18 Dec 09, I had my SL adjusted to 89.37 as the market is recovering and the last low point not considering the strong downward movement was 89.37. Eventually, my SL (89.37) was hit and after that market recovers and is now beyond my TP of 90.75. I am not feeling sore or sad that I had made a wrong decision to adjust my SL which eventually was hit and eventually going beyond my TP. I am trying to learn from this trade so as to make better decision in future for similiar situation. Please comment whether I should have adjusted my SL to the minor support at 89.37 or should have left it at 88.80.
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