A Trader Journal

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Retrospective - EURUSD

This is the fourth and final post on the EURUSD reversal trade. First post has analysis and case for taking long position few weeks back. Second post has analysis and trade management reason for taking partial profits from the position. Third post has trade management analysis along with new stop for remaining position.

Retrospect is structured along 3 questions:
  • What is the result?
  • What was done well?
  • What could have been done better?
What is the result?
Low risk reversal long position. Multiple R return (as in Risk:Reward) on first part of position. Stopped out on a throw back on 2nd part of the position. That is fine. 2nd part position also has higher multiple R return. Also bit higher return than 1st part of position. On the net, trade will fall in good trades bucket.


What was done well?
Analysis is pretty close (better than I expected) to the way market unfolded at each stage i.e., before entry, in the middle and finally on the possibility of another leg after correction.

What could have been done better?
  1. Placed stop too tight on the 2nd part of the position? Especially given I was anticipating another up leg per analysis (3rd post).
  2. Took profits too early on the 1st part of the position? Even though pre-entry analysis indicated larger correction (1st post).
  3. 90% of my trades are with trend trades. Was that a factor i.e., did my low comfort with reversal trades clouded trade management judgement?

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