AUDJPY short trade on 17 August 2021
Pre Analysis:-
Correlation:- AUDJPY (2 / 10) significant strength to JPY
Market Territory:- price traded under seller's territory as shown on the chart below (H1)
Session Breaks:- AUD group broke Asia session with weak sentiment (6 pairs)
JPY group broke Asia session with strong sentiment (5 pairs)
Fundamental:- there was no news release for both currencies.
Trading Plan:-
Trade Classification:- B trade
(factors such as correlation, territory & session breaks support this short trade. only fundamental shows no clear direction for both currencies, thus a B class trade was classified)
Entry:-
Entry:- 79.673 (short) 8:02pm
Volume:- 0.72
Risk:- $100 (1%)
Stop:- 79.821 (15 pips)
- money spot / range area marked with no (4)
Post Analysis:-
- close trade with $ 29.63 loss
- thought that no (4) area was money spot & entry made inside this area.
- the surge of price upward made me panic, I don't want to loose in full so decided to close the trade (to avoid loss in full risk).
- the stop not trigger at all and price came back down.
- should I re enter at area marked by (A)? how to calm down & re enter after I loss?
- should I let the trade go and take out my stop at any time of trading?
- this trade also shows price did not hit my stop, this pullback also unable to create new high.
- if this trade hold, it will give max profit of 2.3R
- comment: preparation was ok, pullback reading was ok, execution was ok. the only question was should I let trade loss at full risk?
- side note, during this trading day, there were 6 group of currencies broke either NY or Asia session.
- USD, JPY, CHF on strong sentiment while NZD, AUD, CAD on weak sentiment.
- this made pair selection even difficult in my opinion.
- alternative way, maybe after I loss around $27 I should re enter the trade at (A) area but with the remaining $73 risk as I always set my max loss per day at $100 only.
- during the price surge up after my entry of course I did not know price will continue to go up.
- this re entry will function as a second chance but still within risk control that I use.