FERREXPO (UK) 14/06/2012 – 06/07/2012

Looking at the chart my entry is where the red cross lies. I was SHORT on the trade. However the orange cross was where my stop was placed and was hit. After I came out the price eventually moves into a profitable position. As a result, had my stop been wider I would still be in this and i’d be up another £70 than I am today. Interestingly, my stop was placed inside the 20 day high price channel (they grey area that surrounds the rice line). I should be just outside this (i.e. if the price breaks the 20 day high or low then this is my exit). This may have been an error of accuracy on my part as i’d usually be outside it. If i had been, i’d be £70 up today.

Lesson learnt?

I need to be more sensible about my stops and more accurate. Placing stops outside the 20 day price channels should allow me to get out before it gets too expensive, but allow enough room for the price to move around.


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