Take Profit When You Should, Hold When You Could

As I was packing to leave office around 4.30pm Friday I noticed EUR/USD moving strongly downward. So, I jumped right in. By the time I reached home, my Take Profit was hit for a 33 pips gain. Somehow, I was not that happy as the price kept heading south.

Later, I received signal that the price was reversing. Again, I jumped in only to find out that I was wrong to go long. The price moved steadily down. I cut lost at 17 pips. Later I thought there was a reversal signal again. Both the stochastics and CCI confirmed a Buy entry. I was dead wrong. The price moved fiercely downward. I tried to get out but somehow it failed to execute. That was a BIG mystery to me. Was it because I had my Stop loss on? It kept moving until it hit my Stop Loss way down. That was a big loss for me. It wiped out completely whatever profits I made earlier and put a dent in my small equity.

I kept watching the screen faithfully since 6pm for reversal. Close to midnight the price eased somewhat and I went long. It remained sideways until 1.30am when I decided to call it a night. I was confident the price would reverse upward in equally big way.

When I woke up on Saturday, I checked my trade to find that I was 53 pips ahead. That was worth the efforts of staying up late. I just hope Monday would be a big move up. I could only hope and pray over the weekend that there wouldn't be another big gap down like the week before.

EUR/USD moved 222 pips before it reversed. IF only I had stayed with my first entry, I would have reaped about 200 pips. That was a big IF. It taught me a good lesson to stay in the profit zone without getting out too soon. Next time I would only get out when the price crossed the Pivot Point Moving Average (3 periods) and opened and closed on the other side supported by Williams' %R. That would be my Exit point. Period.