Forex Trade Example (5 May 14)

I'm proud to say that after today's trades, account balance has grown by 11% since the account was set up for the purpose of this blog, with the first trade done on 9 April 2014. Thank you for reading. Comments are greatly appreciated.

It's a slow start to the week. Trends were very gradual. Nevertheless, there is still profits to be made.
Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.

Trade 1

Trade: Short after spotting star doji after a short term uptrend/pullback, and a long red bar after the doji. Waited for next 2 bars to take position on a high and auto took profit at 4 pips.

Review: Since we are trying to take profit from a pullback, it could swing either way, thus it was good to get out quick. Good trade

Trade 2

Trade: Strong pullback on uptrend, but did not fall below previous low (bar body). Bought after spotting hammer doji and confirmation green bar. Quick exit at 3 pips.

Review: Trend was not very strong, but short term direction was confirmed by doji and resistance level. Quick trade to minimize risk.

Trade: Short on downtrend pullback, at first sign of downward movement. But pullback was stronger than expected before continuing downward movement. Quickly took profit at previous low before bar ends.

Review: Too hasty to get into position when pullback has not touched trendline. Noticed that downtrend was ending, or switching to sideways, so quickly exited.

Summary

Sometimes it might seem that we take profit too quickly and forgo the next few bars when price continue to go in our favour. But what we are essentially doing is to use the highest probability to take a small amount of profit, so that our hit rate is high. For some reasons, the market could turn against you and staying longer in position increases the chance of it happening.