I don't know how well you can see the little blue marks. They are my SELL order execs. As you can see they start on the first breakout and what at the time looked like the top of the 6-8 hour range. It had been trading within 30 pips for hours as you can also see.
Classic mistake was for me to keep selling into strength. I sold 4 lots before 1.3920 and had only one lot to sell above 1.3960. I would have had enough margin to sell another 10 lots but at the point the pair hit 1.3980 I was in panic/blocked mode and the speed with which it had shot up from 1.39 to close to 1.40 I had just not experienced in past weeks when having a position. The grey line is my b/e point.
There was no news on the ticker and the price was reacting to the treasuries price falling sharply and equity markets rising to some extent (I believe). I don't have a live feed of treasuries, so don't even watch them.
This is a good example of how my 8-9 out of 10 correct trades can be turned into horrific losses if the one loser goes unchecked or unstopped (I don't work with hard stops - yet - more mental cut off points...). If only I could buy into strength like I sell into it I would have some serious updays!
The story did have a happy end after 14 hours watching the price finally came within 3 pips of my b/e, so I sold for a 70 USD loss. It had been 1'700 loss 12 hours earlier.
But the takeaway for me is this: The doubling or increasing of size to average out and wait for the pullback often works for me. The problem is that if I time the start of selling wrong I will get knocked down by a 150pips move. Luckily the move in this trade was 110pips (1.3880-1.3990) and then hit major resistance.
If the market had broken out of 1.4000 range I'm unsure what I would've done. I was playing with the thought to cover if we crossed 1.4000. Good thing it didn't come to that.... Making up a loss like that would take me more than a week. The pressure might even make me take on more silly trades.
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