Monday 6 July 2015

060715 R 1, didn't measure risk correctly





intro: A good read throughout except the GBPUSD, I set a limit order on it which felt/looked "wrong" and subsequently gave me the loss.



thoughts: In hindsight, well with fresh eyes the fact is it didn't offer a "solid" 3R from the offset. It  "felt wrong" because the supply/demand imbalance just wasn't that out of balance.



summary: Today I have defined a "solid 3R" as : 3R being reached before price runs into the top of demand or bottom of supply. These precise definitions are the reasons why I am not struggling to follow this trade plan and the reason why I am making less mistakes, there is no ambiguity. There was today but there won't be tomorrow or until I find another unclear area of my plan.



GU trade:


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