The NZD looked like it had good potential to go down during the UK session, and allowed for a small stop. The Reward to Risk was a bit better than 4.5:1 to our Target 2 – easily meeting our minimum risk criteria of 3:1.
The AUD shot up while Governor Stephens was speaking, and I was really hoping for it to roll over and set up for one of my favourite trading patterns, but it wasn’t to be. The EUR had potential, but the stop loss was too expensive…so the Kiwi turned out to be the preferred setup.
We didn’t make it to our Targets, but we’ll take 30 pips any day.
The market was very generous to begin our trading week and the past 2 days have been tricky.
A wonderful thing about trading, is every day is a new day and every week we search for new opportunities using the same tools – like a prospector searching for gold.
Our particular style enables us to take very low risk and high probability trade setups. We bank the pips each session. We never let large gains back up on us and we never leave positions open at the end of the trading session. We have clearly defined targets before we enter and we read price as it moves through the levels toward our targets. If price indicates to us that it may be reversing, we have protected our profits and happily accept what the market gives us. We remove risk (the initial stop loss) as soon as it is prudent to do so, thereby making our trades “stress free” as they progress.
A little tip: Never move a stop loss to break even. Always move it ahead to at least, Plus 1 pip. It is psychologically much better to have a positive trade than a scratch trade. After all, the dealer has made money the moment you open the trade and again when you close it. This naturally refers to moving the stop loss once it is prudent to do so.
Enjoy your weekend!