4th of July is coming up and US banks are closed today. Therefore it is probably not the best idea to trade a lot today because there is good chance that we will see a lot of random price action.
Still I tried to find some trades this morning and the first attempts did not work out. I then set a level alert at 1.24871 (GBPUSD ) with the idea to go short from there.
I go short when the following conditions are met:
1) Price reaches level alert (1.24871).
2) Price action slows down in front of resistance.
3) ProFx shows me that the price is slowing down and the multi oscillator is rolling over.
4) If the price goes above the resistance and stays above I will close my position.
5) If the price breaks out to the upside I will close my position using the emergency exit button.
6) If the price hangs around at the resistance level I will reduce my position (close half button) to reduce my risk.
7) If the trade works out I will move all stops to break even as soon as possible.
8) I will close some parts of my position on the way down to pay myself.
9) I will close parts of my positions when the price slows down (ProFx shows me that).
10) I will close the rest when the momentum stops.
Risk/Reward and Result
Risk: 4 Pips for the position I entered to early and 3 Pips for the other position.
Reward: 1:3 or better.
How it played out
What was done well and what could I have done better?
(-) As a lot of new users watch the account I felt antsy to place some trades.
(-) I entered first part of the position early and exposed myself to more risk then required.
(+) Solid trade idea based on ProFx and support and resistance.
(+) Closed trades when ProFx told me that the price is slowing down.
(+) Though I knew that the move might continue, I did close my positions in the right moment and did not overstay for the 'jackpot'.
(+) I cut all forced trades quickly and no harm was done to the account.
- +50 Pips
- 15 Trades with a total volume of 5 lots
I look forward for your feedback to post trade ideas and details in the most useful format.