Saturday 16 November 2013

Closed Trade CGF

When I open trades, I also place a disaster stop and a profit target into the CFD platform.  The disaster stop is never intended to be taken out but it serves as a capital protection device should something negative and unexpected occur.  The target is there to catch price spikes.  If the trade moves up without too much volatility the profit target moves up with it, as does the disaster stop loss and the real stop loss.   I open and close trades at the open of the next day so the only way they otherwise disappear from my screen is from a price dump or a price jump.  Happily CGF falls into the latter of these two, even though it spent practically a month doing exactly nothing, and I banked nearly 2.8R

Charts courtesy of www.IncredibleCharts.com

Since this trade closed CGF has kept going in a very nice trend and closed at 6.13 yesterday compared to my 4.64 selling price.  This sort of thing used to drive me nuts but I realize these days that no method catches the best possible outcome of every single trade.  All any trader can do is pick the outcome that creates the least anguish.

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