Sterling takes a Pounding GBPUSD swing evaluation
After a dozen or so bars on my hourly chart, my GBPUSD goes down and is out. I raised my stoploss in the middle of the week as my trade wasn't going as expected and not breaking above the daily 20 EMA like the EURUSD, AUDUSD.
Here I made a mistake of adding in to a losing position, Well during that time, my reasoning was still somewhat sound as my second buy order had a higher stoploss (the first low point of the week). After hitting that stop loss and going back up, that's when I decided to lower my stop loss on my first trade.
In general, adding to a position is OK as long as the trade conditions are still sound. I thought that the support could hold so I was averaging down. The mistake in this scenario is that my equity risk gets higher.
This trade has been my worst for the portfolio yet losing almost 185 pips and breaking my short term wins for the account.
What I aim to do better on swing and longer term trades is to look at the larger trend and watchout for potential resistance points especially psychological ones like the 1.5000 one for this GBPUSD pair. I will certainly buy this pair again if it manages to break above that barrier.
