18 February 2007

EuroTrip


This Euro trade initiated two weeks ago can make even the most seasoned trader go nuts and want to go get that accounting degree they only have two semesters left to complete. (You can click on the chart to expand). I liked the volatility and volume (not shown) at the $1.2900 level and was looking for entry on three to four contracts...entry was taken at the 1.2988 level and the currency immediately rallied to the 1.3050 level, where, in retrospect, I should have taken some profits. Instead I wanted to hold out for the run into resistance at the bottom of the last range near 1.3125...anyway I set a hard stop just under the 1.2970 level that I believed would hold any swing low. Obviously it did not.

24 ticks (X3) @ $12.50 a tick($37.50) gives a not too fat loss of $900.
Profit goal at the $1.3125 level...$5,100.
So more then 5 -1 risk ratio...jfg.

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