Trimming A Loser
I just trimmed a losing position and took a loss in the gut. But I still believe in the analysis and hold now a much smaller position.
I decided early to hold a 2 layer short on the GBPUSD. I closed the first layer (CA 1.6225) at 1.63 because price held true to its close and is higher at the open. According to my analysis, it can now go higher still. No reason to hold the 1st layer any longer. The 2nd layer is well-positioned for this anticipated move higher so let’s see what price will do.
Nonetheless, it still hurts. I took it in the gut and ego when I closed those trades. But nobody ever said risk management was always a pleasure. Capital preservation is A MUST. Live to trade another day. As my daddy tells me, “Medicine doesn’t always taste good but it’s always good for you.”
Tonight’s medicine tasted awful.
