waiting for setups .....I see there was a set up on the USD/JPY hourly chart,
unfortunately I was sitting on the beach soaking up the sun ...here in sunny Capetown South Africa
Now you see ...what I mean about discipline , my reasoning behind today and deciding to take today off ,is that tomorrow is a holiday, because of Easter weekend so there is not much volume .....
As well as it is extremely important that you don't chase trades,just for the sake of trading.
ALWAYS trade with an edge ....A MENTOR ONCE TOLD ME as well as countless trading books
THE MISSED USD/JPY TRADE
Unfortunately whilst sitting soaking up the sun I missed a trade setup that I might have entered
The set up was seen on the hourly chart bouncing off support at 93.31 a bullish pin bar or otherwise known as a Hammer ,the JPY has been in a bullish trend for the past month . Resistance definitely came in at around 93.70 but it is managing to push higher ........
now in hindsight there is always money to be made but in reality you have to play it safe .....The way I would have managed the that trade .....My entry would have been set at around 93.49 ,just above the high of the pin bar (see the red dotted line ) .I would have set a stop at 75% of the length of the pin bar at 93.36 level .
I would have banked half of my open position at 20 pips ,why since I am trading my own money,and you do not work for nothing ,nor start a bussiness for without wanting to make profit. The remainder of the other half of the position , to be closed out at 93.70 since weekly resistance was found at that level ,yes price has pushed higher ,bu t this would have been the trading plan risk reward ratio was 1:1 whilst writing this review it's occured to me that after banking the 20 pip the better option would have been to let the remaining open position to ride the market ,by moving my stop to break even and then trailing a stop.
My analysis of the market before then ,would have also revealed to me that market might have exhausted itself at the 93.67 level which is just below my 93.70 weekly resistance level.
A way to lock in more profit is ,once the trade has hit certain levels , to trail a high low stop with reference this trade ,you could trail the stop at each of the candle ,lows thus letting the market stop you out and therefore locking in more profit than anticipated.
As I blog and post more trades I will demonstrate my projection techniques that are pretty accurate in interpreting future market levels .
Happy trading guys
missed USD/JPY trade
