Day Trading the Forex for Profits...

Well my last trade of the week was long USD/CFH @ 1.0156. Target was 1.0200. Exited at near scratch right before it rallied to my target. Thankfully my week was good enough to not make this a big deal, but a lesson was learned for sure.
 
Quote from Joman:

Hi Greg, glad to see you still do well with your trading.

Maybe we can discuss a bit your trades and learn from each other.

For this trade I was wondering how did you set your target ?

I could have taken this counter-trend short, but for a 10 /15 pts scalp max.

Looking at the 5min chart I can see a clear support around 1.3780.
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Hey Jo, good to hear from you. Target for me was easy. I ALWAYS make sure I have at least a 1:1 R:R ratio, which at 16 pip initial stop and 20 pip initial target, I achieved.

The next sustantial S/R level down from 3790 was 3760-3769.

SO.... obvious play was place target JUST above this level, to ensure a locked in profit.

Also, once price gets about 60% -80% of the way to my first target, I start looking to move my stop up to BE + 1 pip.

I can't dictact the profit, only the loss. So, I work on minimizing the potential for damage, and let S/R levels and price action do the rest.

Speaking of price action, the velocity of the drop from 3790 to 3760 is what gave me the courage to play this for almost 90 pips as a final target.

NO idea if it will get there, I personally give it less than 50:50, but with a 16 pip risk, 88 pip target, I only need to be right about 20% of the time to show a profit.

And besides, CANT lose on this trade now... stop is better than break even... as all stops should be as soon as it is reasonable to put them there. :)
 
Obvisouly you let this winner run very well, congrat for that !

I would have been a bit less agressive than you since we didn't have a re-test of the high when you took the trade.

After the lower high was established around 1.3793 (first pull back) I've clearly seen your target was very realistic.

You were in advance compared to my timing.

Very nice trade !
 
PA is changing a bit...so I closed out the second target a bit early, at 1.3752.

Leaving last target where it is, at 3702. Hell, it's only an 8th of my original position, but it stands to make me almost 0.5% on my account, at no risk.

This is the type of situation I always look for, situations where I can have a small part of a position provider much larger than average gains, at very little or no risk.

As it stands, i'm only down less than 1/3 of one percent today, and this is my only losing day this week. IF that final position hits the market, I'll end up a better than break even day.

It's late here now...time for bed.

Trade well all...

Greg
 
Hey everyone, just got back from a few day in yellowstone national park. Beautiful place to visit! My wife and I decided to take a few days off, and we had other family members who were there, so we decided to join them for a bit.

I'm back now however, and expect to be trading tonight. It all depends on whether the plan to los angeles gets in with enough time for me to do my premarket analysis.

If not, I will be back trading tomrrow.

I will try to answer all PM's tonight.

Good Trading to all!

Greg
 
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