Saturday, May 10, 2014

Forex Trade Example (9 May 14)

Had been a little busy this week. Didn't trade for 2 days. But I managed to catch this uptrend on the USD/JPY chart.
Disclaimer:  This is purely for sharing purpose only, not a trading advice or instruction.


Trade: Buy on uptrend pullback after seeing upward signal. Price moved down some more after breaking previous high. Didn’t take profit as target was not hit and there is potential to move higher.  Did not cut since previous low was not broken. Took profit at 6.3 pips at next surge.
Review: Could have taken profit at first upward move about 8 bars later. Not worth the risk of trend reversal for a little more profit.

Summary
Sometimes during days of quiet activity, it is better not to trade than to enter into a bad trade in which you need to wait very long for the market to react. But one trade a day should not be a problem.

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