Trade of the week: stand aside
Since we didn't find any high probability/low risk trade setups this week we wish to stand aside and wait for better opportunities to occur. Sometimes its best not to trade.
(Partial video transcript)
No clear trading opportunity this week
Axel Rudolph: Hello and welcome to "Trade of the week" on Monday 15th September. Now, today, and some of you might not like this, I do not have a set up for you. And the reason is that I'm not just going to pluck one out of the air to please you, because those quite often then just simply go wrong. Sometimes it actually makes sense to stay aside and to wait for better opportunities to occur.
Now, there are a lot of people who might completely disagree with me and say, "Oh no, you have setups on this or that asset". But, for me right now, today I honestly don't find anything which I fancy and, therefore, I am going to stand aside. So, that's also something that you can do. You do not have to trade every single day. You do not need to trade every week. You want to highlight the high probability, low risk investment opportunities. Those are the ones you want to focus on.
Previous trading outcomes
So with that in mind, let's go back to last week's "Trade of the week", which was to go short GBP/JPY. And as you can see on the daily chart, we basically came down straight away after the "Trade of the week", and didn't quite hit our downside target unfortunately. And then we rallied back up again and basically we would have been stopped out just here. So, we had a small loss because we went short here. Tight stop. It went in our favour.
And, personally, what I would have done is probably move my stop to my entry level as soon as GBP/JPY came off by the same distance as my risk. What I mean by that is, basically, we were risking I think about 75 points. So when GBP/JPY came down 75 points, which it did on Tuesday, I would have then moved my stop to break even, therefore having a potentially free trade on. Because I didn't tell you about it though, I count this one as a loss.
This week's strategy in summary
So this week's "Trade of the week" is to stand aside, simply because there aren't any setups which are, for me at least, a high probability, low risk investment opportunity. To stand aside is also a viable option when trading and investing.
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