CHF JPY - big mistake - Sell or Buy for W1?

Trading Discussion Currencies
1

Hi all, I am new here and I started trading about one month ago.

I think I made a mistake on 2019.09.19 at 5:34 (Berlin, Rome - GMT +2)

I have a position of sell CHF JPY - Price 108.162 vs target 108.902 (obviously moving).
At the moment I have margin but the potential loss is 5000 USD.

I kindly ask to experts, that maybe face similar situations…how can I manage such “mistake”?

It is better to close the position, or to try next week to see what will happen? I see strong sell today, weekly signal buy (I use several sites for indicators)

Thanks a lot for each contribution!

2

The general rule is if you become unhappy with a trade, close it immediately. Learn from what happened and look for a better opportunity.

However, you say you have a sell position open but your target is above the entry price. Are you giving us a clear picture?

Do you have a stop-loss set?
How do you know the loss is $5000?
What % of your account is $5000?

3

Hi, pleased to meet you here!

Thanks for the reply and sorry for lacking of info.

I use Dream Equity live software, so that I have the following situation now:

Balance 16K, equity 6k, margin 5k, free margin 1k, margin level 119%…profit -10k but with several position -> -5k are of the position in exam

Sell 7k with the values provided in the firs post, namely CHF JPY - Price 108.162 vs target 108.902

Thx!

4

Can you close part of the position? Then set a stop-loss so that your remaining account capital at risk would be no bigger than 2%? But you might sleep better if you close the whole position. This means taking a serious immediate loss but stops the loss getting out of control and wiping out your account.

Many traders set a stop-loss as soon as they enter a trade. They have already used the TA to decide where the SL should be and then they adjust the size of the position so that if the SL is hit, the maximum loss of account capital would be no more than 2% of capital.

Look at your open trades. Do they have SL’s? If the SL on each is hit, what % of capital would your account lose? If several positions are correlated, and all their SL’s were hit simultaneously, what % of your capital would your account lose?

5

Thank you for your valuable opinion and advice. For the others no SL…
Also the rule of 2% is very interesting.