As mentioned in my previous post, I will be posting some Forex Trade Examples that illustrate my trading methodologies. Throughout these posts, you will see examples of taking quick profit, cutting loss and holding out to break even. There will be good trades and bad trades, just like what every trader will experience.
Disclaimer: This is not a trading advice or instruction, it is only for the purpose of sharing a personal opinion on trading.
Trade: Buy on uptrend pullback, averaging down as the kicker reversal signal is formed. Took quick profit at next green bar.
Review: Might have been better to take half profit and risk the other half for higher profits after the strong kicker reversal signal.
Trade 1
Trade: Sell after downtrend pullback. Quick take profit after 3 bars.
Review: Good trade. Waited for confirmation of trend continuation, took profit quickly.
Trade 2
Trade: Sell at downtrend pullback. Price moved against trade. But long term trend was still strong downtrend, hence, held on for next big continuation as long as top resistance is not broken.
Review: Didn't wait for confirmation of trend continuation, hence larger risk was taken. If long term trend was not strong downtrend, would have cut loss after previous high is broken. Not a very good trade.
Trade 1
Trade: Buy at uptrend pullback, averaged down as reversal starts to form. Took profit immediately to break even and wait for confirmation.
Review: Should have waited for confirmation of trend continuation. This is a longer consolidation period.
Trade 2
Trade: Buy after uptrend pullback and continuation confirmation with long green bar. Took profit quickly at next bar.
Review: Good to wait for confirmation. Price action will be stronger after a longer consolidation period.
Trade: Buy on strong uptrend pullback. Took profit at first big green bar to reduce time in market. Consolidation might take longer.
Review: Safe trade with strategic take profit. Good trade.
Summary
As you can see from above, some trades are spot on, some are a bit riskier, some needed a longer time for the market to move to your favour. As a general rule, if you trade with the trend, and reduce time in the market, there is less to worry about. The thinking should be done before making the trade, and not after taking a position.
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