Friday, April 11, 2014

Forex Trade Example ( 10 Apr 14)

Consecutive trading day post. The 2 trades below continues to illustrate trend trading, and how it helps you to hold your position in confidence.
Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.


Trade: Buy during strong pullback on an uptrend. Took profit after about 15 bars since it seems to be going into consolidation phase.
Review: Good position taken at bottom of a pullback. Right decision to pull out to minimize risk, re-assess and take another position.




Trade: Buy during an uptrend pullback. Trendline broken, but previous support low is not compromised. Took profit at 10 bars to minimize risk.
Review: General direction was correct. Broken trendline signifies longer consolidation or change of short term trend. Good to get out quickly with profit.

Summary
Continue to trade with the general trend and take profits quickly. Normally I would be very satisfied with a 5 pip profit. Conservative take profits would be the previous high (for uptrend buy) and previous low (for downtrend sell). Remember, capital preservation is key to trading. No capital, no trade.

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