For the first time in two weeks I have actually (almost) made a profit of $100 today before close. Yay!
The reason for this is that I have stopped trading my beloved USD/ZAR and have been trading the USD/JPY using the MACD indicator and this seems to be working well for me EXCEPT for one thing:
Like an idiot in the beginning I misread the indicator and (of course) instead of just buying one lot I bought three lots the wrong way.
All the way up I made profits on all my trades but of course the three positions detailed above are now in a huge loss situation. Just before the market closed I managed to buy three positions in the opposite direction so that I did not get a margin call (yes I know - I have once again ignored everything on babypips.com but you have to give me credit now as at least I am trying to use indicators etc. etc. and not the shotgun approach which has cost me at least $4000 thus far).
I do not like to use stops or trailing stops because my dealer rapes me when I do.
I refuse to write off the little bit of gain that I have made.
What would you do?
Anybody?
As I said before the pair is the USD/JPY.
Basically I sold USD and bought JPY at around 117.43 (3 lots)
Just before close I sold JPY and bought USD at 118.05 (3 lots)
The rate at close was sitting at 118.08
The thing that I am most worried about is if I am learning to read some of these indicators correctly - on the hourly and daily chart the rate is going up all the time although graphs of the shorter time frames were contradictory to this but nevertheless helped my to make my first little profit!!!
What is the best thing to do in this situation? Cus (cut - at first I actually made a spelling mistake) your losses now (which would wipe out my profit and then some) or just forget about them (they are effectively hedged for now) and carry on trading until you have made up for the loss and then write them off or what?
If the USD/JPY was trading in a certain range today (Friday) would it be safe to assume that on Sunday night when Tokyo opens the rate will go down and I can possibly make something on the down and cut the losses at a minimum (if any)?
What is good practice in this situation?
Regards,
Dale.