The Result of Yesterday’s "Trade of The Week"

Well, that will teach me to go out on a limb and post a trade “in advance” of seeing the outcome ūüėČ I’m referring to yesterday’s (failed) Trade of The Week. On the second day, the price rose to meet my¬†guaranteed¬†stop order, and stopped me out for a loss of 9.40 “pips” (e.g. ¬£9.40 per ¬£1-per-point staked) plus 1.57 additional “pips” for the¬†guarantee¬†on the¬†stop order.

This was a failed trade, but not a mistake, because it did what I expected it to do in one of the envisaged scenarios. I lost 10.97 pips in search of a 60-pip (or more) profit, risk is a healthy reward-risk ratio of 6:1. With only a “pure chance” 50% success rate, that kind of reward-risk ratio would make a lot of money over time.

“Confidence is not about hoping for the best, but being able to handle the worst”

The worst thing that could happen now is¬†not¬†the price falling to my original target thus proving me “right” all along. The worst thing would be for me to re-enter short on that assumption, with no¬†stop order, and the price then shoot to the moon! Or to re-enter, stop out, re-enter, stop out, and so on. So, for now, I’ll treat it as “one that got away” while concentrating on my mainly-long and mainly-long-term¬†position trading¬†strategy.

Two Steps to Better Spread Betting:

1) Buy the Better Spread Betting Book
2) Sign up with Capital Spreads, IG, ETX Capital, or Spread Co

Disclaimer: this posting is for general education only; it is not trading advice.