Back to trading – first loss is the best loss (-5pips)

After long holidays I am back to trading again. Today’s sessions was good even it produced small loss. Since I haven’t traded live for last two months I have set strict targets for my trading. I wanted to take it easy so here is a short list of what ‘taking it easy’ means to me:

• trade only one strategy and IF you have time look at others but do not trade them
• focus only on your main VFI strategy
• focus only on ONE GOOD TRADE, no more no less
• after you did your ONE TRADE, whatever result it produced just watch the market
• no rush, no pressure – get back to your routines slowly

The reason I did that is because I knew how much I was looking forward to getting back to trading and if I have started tooooo hyped I might have over-trade, over-rush and generally get overexcited. So let’s have a look at my tiny trade.

As I have said in my list I have traded only my main strategy “VFI”. The trade happened in EURUSD and it had solid prospects:

• decent price movements
• price above pivot and main sma’s
• EURUSD opened higher, faded the gap and open the possibility to surging higher towards the opening Sunday price
• but also on the other hand the volatility was low and with bank holidays in England I could have expected that the price will not make any strong direction movements

First the trade jumped higher after I have entered and very soon the whole bar was covered in the opposite direction. This was the first sign of weakness but I didn’t want to close the trade (i was believing I need to know more about the move) so I was waiting for more and five minutes later I had it. At 11:11 (GMT) at 1.2728 I closed the trade(first picture). First sign was the instant covering of the previous stronger move in my direction. Second and last signal for me was stronger short candles against my position. Overall -5pips loss. One trade done and gone. As you can see on the second picture I did a good thing closing the trade since soon the trade would have hit my stop-loss.
Speak to you soon after afternoon trading session.