Can i still hold on sell of AUDCAD?. What’s your thought guys?.
There can always be two views of any market, either to be long or to be short. You can also see this as a choice between following an important trend or going against the trend. Both views can be valid but it depends on how they are reached and managed.
To choose one direction or the other you must have listed a number of factors to support your decision -
What were these?
Are they all still valid?
Have new factors emerged to support the opposite decision?
If your factors for both directions are equally good, is it better to simply stay away from this market?
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IMO I would keep a close watch on the lower TFs looking for a reversal back to the overall bullish trend. I don’t consider you’ll get much more action holding your position. Every one of my signals point to a long term buying position, and I would be disappointed if it never transpired today.
Beware, this is only my opinion, and as London is not open as I post this, anything could still happen.
Best of luck.
Hi @tommor,
I agree there are two views, but analysis of these views results in four possible options:
A - do nothing - stay where you are
B - Get out - whether in profit or in loss, close the position and stay away from this market
C - Bull - ladder in (if you are long, or ladder out if you are short - raise your exposure
D - Bear - ladder out (if you are long, or ladder in if you are short)- decrease your exposure - easier said than done, because depending on your broker and how you entered (long or short) you may not be able to sell part of your trade, so this is one to think about when you enter a Forex trade.
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This is all correct. I’m just hoping our original poster had such clear thinking behind his trade decision - but we shall see…
PS.
For completeness, though not a suggestion for this trader, an additional option would be some type of hedging strategy. They’re too tricky for a beginner full stop. And even for an experienced trader, the time to plan the strategy is before the trade goes in, not after it starts to go sour.
I am currently enjoying playing with a hedging strategy which is another reason I thought to mention it.
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