Alright so spent the better part of the day trying to figure out the best plan of action after the disaster this morning. I can quite easily close my short EUR position and take the -80 pip loss and be flat for the week, however, since I am bearish on the EUR I can just keep it using size managment so that I can capitalize on further drops. (This is basically the strategy of sizing in small size every 100 pips up like i mentioned before). I chose not to do it last time since the whole reason i started this journal was to avoid trading like a maniac. But now I have been given this position by the market and I sortof want to make some lemonade out of this lemon.
The problem is I see at least 200 potential pips of losses before a turn around and this can be extremely problamatic. I am not in a good place and the trend is not really my friend right now. However, I thought about it all day, did some research, took my emotion out and given the risk to reward I am currently at I think it is worth a try.
This may or may not be a disaster and I am making this decision knowing full well that I am going against some of my rules. I have done a couple of trades similar to this before with some success so its not like I dont know what to expect. At the very least it will spice up this journal.
I will be both adding size and covering parts of my EUR short, but I should keep the original short from .5500, I will also hedge myself at certain times using either JPY or GBP. I have already taken an additional 30K short from .55915 to .5577 for 15 pip profit, as well as a 25K USDJPY short as a hedge. Most likely tomorrow is gonna be painful but I am ready for it. Wish me luck.
