In my last post I mentioned that I had a forum mate who uses stop-loss and targets even if he is in profit...
After all my interviews today, I came back home to be pleasantly surprised (well, I kinda expected it, otherwise I wouldn't short the pair) by a gain of 170+ pips on my G/U short position. I suspect I could go down further, but having seen what happened in the earlier part of the month when the trend went downwards but headed straight back for the 2.0000 resistance line again, I decided I'll use the method taught (though indirectly thru a forum post) by my fellow forum chatter.
So I set a stop-loss 30 pips away from the then 170+ pips gained level and a target for about another 200 pips southwards. The position closed within half an hour. And I ended up with 148 pips gained.
On hindsight, I could have set a bigger allowance for the stop-loss as the charts fluctuate in cycles to reach their final destination. (maybe the other end of the graph)
I need to set a standard, but I am undecided now. 30/170 is around 18% of the total gain, maybe I can set about 25%.
I'm sure you guys have realised by now that I do not use any technical analysis tools for now. Just read a introductory book on equities and trading shares, and I found my experience in forex and studies of economics in JC really useful.
For now it is more short of the G/U!
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