USDCAD comes to a halt at 1.0581 today. My original target was 1.05761. A mere 5 pips difference. This position is now +79 pips on paper. I moved my stop to breakeven last night. Normally, I would have covered most, if not all, of the position at this point. But I'll hold onto the full amount this time. For now. Reasons are as follow.
- USDCAD likes to grind out both bulls and bears at obvious levels
- The down move that I'm seeing is still in an early stage.
- My position is too small to be worthwhile if I take profit now.
- Analysis of my recent performance shows that I often don't ride my winners long enough.
- I must learn to adopt a longer term strategy now that I [can't trade as often].
In particular, Figure 1 shows what I mean by #2.
[caption id="" align="aligncenter" width="570" caption="USDCAD, 4-hour"][/caption] In fact, I intend to look for opportunities to add to this position. As long as USDCAD stays below 1.0645, I'm confident (not exactly the right word though) with this down move. From this point onward, it's new territory for me as I push beyond my comfort zone. Is this an ill-fated move or a spark of insight? Let me know what you think about this extended trade. Update February 15: I closed this trade for +131 pips gain.