Posted by: joetradingplace | April 22, 2015

Long and Short in same currency

Look at this post before you read https://joetradingplace.wordpress.com/2015/03/09/holding-long-and-short-in-same-currency/ . I mentioned how i can take a short and long trade in the same market, don’t confuse it with hedging…i am not hedging, i am just making sure that i don’t miss a trend. As traders we don’t know when trends will start or end, but we react to signs of trend reversal and trend continuation. Look at the gbpjpy chart, i am still short from 182.50, but i have paid myself by taking partial profits on 4 lots…i only have two lots which i have left to run. Now i have noticed an opportunity that the downtrend might be finishing…how did i notice that..by the break of the down sloping line joining 18/03 and 17/04. I have been short biased, but when i noticed that break, i took a long trade at 177.90, because if its the start of a new trend, i wouldn’t want to miss it because i am short biased. I took 6 lots and i have paid myself by taking partial profit on 3 lots…so i have 3 lots left, with 2 of them at BE and one locking 90 pips. With the two trades, I am now placed at a great advantage if trend reverse and start moving up…or if the downtrend continues. Hope this example explains what i wanted to say about holding short and long in the same market….

Screen Shot 2015-04-22 at 13.28.57

Screen Shot 2015-04-22 at 13.29.46

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