Trading Inside an Open Trade

I posted earlier about my [intlink id=”1204″ type=”post”]profitable EUR/USD trade[/intlink] but that didn’t stop me from continuing trading the forex market. Once again I opted to short sell the same currency pair at a major resistance level, only this time I traded 2 lots instead of 3 in comparison with my previous trade. I should remind that I haven’t yet traded out the remaining 50K I had sold at 1.32850, which have already made more than $400. This short selling was almost a losing trade when EUR/USD came close to 2 pips of my stop loss, but eventually it ended as another winner for the day. I have now 50K more to buy to cover in addition with the initial 50K, for a total of 1 lot.

The trading layout is the same as before, showing the 1-min, 3-min, 15-min and hourly EUR/USD graphs. I have pointed out the first trade mentioned in the previous post with the orange arrow in the 15-minute graph. The entry point for the second trade was based almost exclusively on the previous support level at 1.32365, which was expected to convert into a resistance level. Indeed the currency pair resumed the decline, although I got a bit worrying when the price almost hit my 10 pips away stop loss. This time I had sold 2 lots, as I didn’t want to increase my exposure to the specific pair. As I didn’t know if the support level at 1.3210 was going to hold, I decided on buying back 1.5 lot and leave 0.5 lot in case the support gives way. At the time of writing it has broken and EUR/USD is trading at 1.3170.

Since the S2 pivot point at 1.3200 has not been proven strong to withstand the pair’s decline, along with the fact that it is a round number I am led to believe EUR/USD is trading downwards nowadays. I am just left with 1 whole lot to trade out of both my positions and take home some excellent profits.

The time shown in images is Eastern European Time (EET).

Update 16:20 EET: As Euro is drifting below 1.3150, the remaining open position (two 50K’s) shows a $1,000 profit, more than the $700 the traded out lots accumulated combined.