Learning to make a POTENTIAL big loss much, much SMALLER

I am a technician by nature, but I also know that keeping track of the fundamental stuff will help you mitigate losses...Preserving your trading capital should be your chief concern...not "how much can I make on this trade?"

This morning the BOE lowered interest rates by 50bp, which was expected. Before the announcement, I held 2 Lots (short) on the GBP/CHF and I was down significantly. On the news the pair dropped and my positions got significantly better...so I covered half my position at a small loss.

The trade triangles on both the weekly and daily are still pointing south so I kept some of my position in case we continue down, but it was not worth the risk to hold the whole thing, given that it has been losing since I shorted it....

Here is a good summation for why I maintained some of my short, even though it is still down.