This is a follow up to https://charts101.com/2021/01/11/eur-usd-short-positions/
There were 3 short positions. When the stop loss was entered, it automatically applied to all 3 orders. When it was moved into profit, it still applied to all 3 orders automatically.
Since this is a USA based account, we cannot have separate take profit orders for each of the positions.
We would need to exit them manually, complying with FIFO.
Let’s note a few important points.
- After going short, the price immediately moved higher. In this case about 45 points.
- If you do not have a stop loss in place, with a full lot size that might be negative -$450
- The price then continued lower, but we were down 45 points and took 7 points profit. In general, we want to do better than that.
- We did take advantage with the 2nd trade. At that point the channel would have been drawn. For the first trade, we can’t say there was a channel like formation in place yet.