Well, well. Not only did USDCAD poke its head above resistance but it shot up to 1.0697 taking out one of my trades at 1.0655 for a profit of 219 pips. The other trade is still on as I have the profit target set quite a bit higher, wondering if it can make it up through its old range of 1.0592 to 1.1125.
Why did I put a profit target at 1.0655? Many times pairs will poke above resistance only to fall back down. I knew I was going to be away most of today at meetings and I decided to grab the pips should it get up there. But why not target 1.0600? It could have been. One reason is I don’t normally set targets at round numbers. Also, if you study the range from this past summer you find 1.0685 is a minor resistance area. Had I been around I might have moved the stop in closer and also moved the profit target. But this is Monday-morning quarterbacking. The trade still on is solidly profitable; the one that just went out earned over 200 pips. Why quibble?
The USD isn’t out of the woods yet, what with all the dollar bears out there and those fearful that the currency is on its last legs. But for now it’s doing alright. Now we need to see if its little breakout fails. If it does, I’ll decide what to do then. One thing I do know is that the old truism is true—those that don’t know what’s going to happen are the ones talking; those that know aren’t talking. And it’s really doubtful anyone knows.
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment