Cable continued its climb today with solid movement. Last nights trading gives me an opportunity to discuss another key factor in our strategy. When we got up this morning we had already closed our smaller trade for 40 pips and had a mild pullback, we closed our second bigger trade at 1.7720 for only 35 pips at 8:00AM.
Had we stayed in our trade we would have closed it for 85 Pips @ 1.7770. This looks like we lost out on 50 pips, but you can’t lose what you never had. We have strict rules about certain news, and those rules told us we had to close our trades before the release of the PPI and housing starts at 8:30 AM.
The reason we have this rule is simple, in our years of trading experience we have seen 35 pip positive trade become a 40 negative stop loss in mere minutes. After witnessing this again and again, we decided it was much better to take the sure 35 pips off the table and bank them, and not risk them with the unpredictable move of a significant piece of.
Last night netted us 70 pips, not too bad, and with Cable heading into a more trending market, we are poised to make more.
Tonight we are trading around 1.7810. We are again looking for a buy. There is some support around the big number 1.7800, and even more around 1.7870. The first resistance is going to be around 1.7900. All indicators appear to be signaling that cable will continue up and test the resistance at 1.7909.
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Be confident in yourself and your abilities and I think you’ll be pleasantly surprised with the results that you will see.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style with a Forex trading education consisting of a Forex Trading Course or Forex Seminar.
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[...] A Look Back At Forex Trading 4 19 06By admin on July 14, 2010 Cable continued its climb today with solid movement. Last nights trading gives me an opportunity to discuss another key factor in our strategy. When we got up this morning we had already closed our smaller trade for 40 pips and had a mild pullback, we closed our second bigger trade at 1.7720 for … Read More A Look Back At Forex Trading 4 19 06 [...]
[...] A Look Back At Forex Trading 4 19 06 Cable continued its climb today with solid movement. Last nights trading gives me an opportunity to discuss another key factor in our strategy. When we got up this morning we had already closed our smaller trade for 40 pips and had a mild pullback, we closed our second bigger trade at 1.7720 for … Read More A Look Back At Forex Trading 4 19 06 [...]