Just wanted to share a trade we took out last week into this week.
It all started with a desending trend line and a fib tool. So we can see the trend got broken so this was our first indication that price may reverse.
Looking on the higher timeframe of the 4hr charts we could see we may end up having a rallyup after this break, we trusted the instinct and the fist trade was all going to plan... we continued to watch this pair play out on the 1hr charts and saw a new opportunity to add to this inital trade. On the 1hr charts we added in a new fib from low to high and found that price reacted perfectly off the 50%, we entered the trade on the bullish engulfing candle and set the stops just below the previous lows to allow for a retrace. This played out in our favour and price continued to our end goal when buying.
We were consious of where the profit target was as we have a daily resistance level at 0.84913 so instead of sitting on our hands we had a sell order inplace at this level with around a 30 pip stop loss. Again, as you can see this worked out beautifully.
Now, when trades like this happen it makes you feel great. But having traded now for around 4/5 years you begin toget humble with this sort of trading, it doesnt always play out this way and being too over confident can play heavily against you if you do not have a trading plan. All of this was calculated risk and risking no more than 1% of the account per trade which in return has gained us a 9.5% RR return. If things had gone the other way we would have lost 3% which for example on a £10,000 account would have been £300... and a gain of over £900 in 3 trades.
Trading is not a get rich scheme, this takes time especially if you are starting out on a small account. Don't belive all these Instagram marketers who try and sell the dream with "start with £300 and profit 450 pips each week" it's a load of rubbish, some weeks (if you have a plan and stick to it) you may only take one trade out. Remember, if it sounds to good to be true... it probably is.
It all started with a desending trend line and a fib tool. So we can see the trend got broken so this was our first indication that price may reverse.
Looking on the higher timeframe of the 4hr charts we could see we may end up having a rallyup after this break, we trusted the instinct and the fist trade was all going to plan... we continued to watch this pair play out on the 1hr charts and saw a new opportunity to add to this inital trade. On the 1hr charts we added in a new fib from low to high and found that price reacted perfectly off the 50%, we entered the trade on the bullish engulfing candle and set the stops just below the previous lows to allow for a retrace. This played out in our favour and price continued to our end goal when buying.
We were consious of where the profit target was as we have a daily resistance level at 0.84913 so instead of sitting on our hands we had a sell order inplace at this level with around a 30 pip stop loss. Again, as you can see this worked out beautifully.
Now, when trades like this happen it makes you feel great. But having traded now for around 4/5 years you begin toget humble with this sort of trading, it doesnt always play out this way and being too over confident can play heavily against you if you do not have a trading plan. All of this was calculated risk and risking no more than 1% of the account per trade which in return has gained us a 9.5% RR return. If things had gone the other way we would have lost 3% which for example on a £10,000 account would have been £300... and a gain of over £900 in 3 trades.
Trading is not a get rich scheme, this takes time especially if you are starting out on a small account. Don't belive all these Instagram marketers who try and sell the dream with "start with £300 and profit 450 pips each week" it's a load of rubbish, some weeks (if you have a plan and stick to it) you may only take one trade out. Remember, if it sounds to good to be true... it probably is.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.