The Trade: GBP/JPY Short
Reason/Setup:
I entered this trade based on the squeeze indicator on 4 hour chart. But the squeeze indicator signaled the trade at 2am on 15th, but it wasn't until after 7am that I entered the trade. At the time I entered the trade, the reasoning was that the price had dipped and rebounded back to where the original open was and hence would be a good place to enter. Stop and target were 30 pips away.
Trade Details:
- Date Entered: April 15 2008, 7:30am
- Entry: 198.87
- Lots: 10
- Stop Loss: 199.17
- Target: 198.57
- Date Closed: April 15 2008, 7:50am
- Result: Pair hit stop loss.
- Total Pips: -300
- Profit/Loss: $295.87
- Rating: 2
Looking back it, this seem one of those stupid trades to make. First off, I was late with this trade. The squeeze indicator works best when the trade is entered as soon as the signal is given. My price was that the price had rebounded back to the level when the signal was initially given. But this is the precise reason why I shouldn't have entered the trade. The price was nicely rebounding, and I have no business being short this pair. In fact as can be seen from the chart, the price continued a nice move to the upside.
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