As it turns out, we did better on the GBP/JPY trade than we normally would have if we had let it run and stop out on our trailing stop. While I am pleased with that result (more pips is always better than less), I feel I should explain why I got out when I did. In this case I saw a competing trade idea developing. Below is a 15 minute chart of what I was watching on this pair. I didn't call the trade a "Trade Idea" because I didn't feel that strongly about it, but I thought it would drop below the blue line at least for a while and I didn't want to be long this pair feeling that the price would drop. So, I closed the trade. I've been in trades before where I think the pair is going to to the opposite of my position and it causes too much inner conflict. So, I try to avoid them. A simple rule is that you should only hold a trade as long as you feel it is doing, or going to do, what you originally thought it would do. When that feeling changes, close your position.
Below is how our trade worked out. Not bad. In at 147.40, out at 148.75 for +135 pips. I'll take that pretty much any day.
Happy Trading!
