06/02/2014: Stopped out of my GBP/USD short

Having decided to run my Cable short position through the Bank of England rate decision the trade was going well.

Then the press conference of the ECB’s Mario Draghi improved appetite for risk in the afternoon.

With Cable making consistent gains through and after the ECB Press Conference, I have been stopped out of my short position at $1.6345 for a 30 pip loss

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  1. Good morning.
    The trade you made , or the loss you made illustrate very well I think the problem many of us have in trading.
    You had a good profit , I think, 40-50 pips, but you didnt take it.
    Instead you ended up with a loss, almost the same size.
    Can anyone come upp with a good advice…..how to know when to take a profit (or loss)……….?????
    KW

  2. I ve read that its very unusual that the nonfarm payroll exceed the ADP and therfore its probable that the nonfarmpayroll will be less than 175 000. Whats your opinion about that?

  3. There are two mistakes that I made with this.
    Firstly I should have moved my stop to entry, giving me effectively a free run.
    Or secondly, the alternative is to take the profit and not to have a trade open key announcements as markets tend to spike around (as we saw yesterday).
    On the balance of things I believe that I should have moved the stop to entry.
    I will try to take heed of my own advice as trade management is crucial to being a successful trader.

  4. Ok I see.
    You havnt moved your stop even you had a substanciel profit…..
    Well…..we amateurs also make that mistake…..

  5. There is a new post on Non-farm Payrolls. As per the chart, although the general trend is similar, it is difficult to ascertain any decisive number from the ADP data.

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