This week I was really proud of this trade. Not just because it was profitable and ended the week well, but because of the lessons learned along the way.
This week I officially added a new system to my strategy portfolio. This system is a breakout system, focusing on catching large moves in the market, and keeping a tight stop in case the trade goes wrong. I've been testing this system for a few weeks now and backtested it rather extensively - and the results seem pretty solid!
So for this week, I took my first few trades. I took 2 trades initially, both of which stopped out for -$100 each. Then this trade came along...
USD/CHF was trading lower throughout the day, and I wanted a piece of the action. I set my sell stop order, thinking that if price was to break this significant low, we could see price slip lower. Sure enough, the order was triggered, and the trade was on.
USD/CHF slipped further and further down, quickly recovering the two previous losses. Once the trade had gone in my favor, as part of the strategy, I moved my stop to break even. From there, I let the trade run.
After a few more hours, USD/CHF had closed for a huge profit of over $600, and the breakout was successful.
The moral of the story though is that taking 1 winner and 2 losses can be psychologically stressful - especially when there are even more losses in a row. But, by letting the winners run and keeping your risk managed, there seems to be some really great opportunities out there.
That's all for now. Happy trading everyone!
Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.
Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]
With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]
As the fiscal year comes to a close, consumers will likely finish shopping for the holidays, and traders and investors will get some respite thanks to a long weekend due to bank holidays around the world. While concerns about further stock market selloffs may be lingering in the minds of some, a promising set of […]
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here