September 7, 2010

First trade of the week

Hi there everyone, I take this trade yesterday. Maybe more of you not trade yesterday because this last monday was a holyday bank. Is very difficult trade short term days like this, so, I highly recommend stay away from the markets; go to the cinema or if you like painting, do that, or compose a great song about the great Leonardo de Pisa and play a great RPG Videogame. I taste stories about fantasy, witches, legends, etc. But... Not trade.
Anyway, I take this trade, because my strategy show me a opportunity to trade. And... Discipline means just one thing. Enter a position when your strategy show the property setups or give you a clear signal; Pull the trigger. If you not identify opportunity, doesn't matter what day is. No trade if you not identify a Pattern or whatever you trade. That simple not works. And remember: Nobody can be known the future.

The harmonic patterns works on any time frame, but I not trade them on 15 minutes or 5 minutes. You can see the image above of one of my monitors 3 Charts: Daily, 4 hrs and 1 hour. I enter my buy position around 1.0350 Usd/Cad. The reason was: 78% retracement on 4 hr chart and 161.8% extension on 1 hr chart. Harmonic number of course.

You can see my exit in the chart above. sometimes my target not was hit, but I ever follow my position with responsability. So, I move my stop loss 30 pips behind the current price. If the price goes against me, my trade can be closed with profit, I not hesitate for that. I ever want to reduce the risk of my trades.
  Look and see my target at 61.8% retracement, and look the Left chart: AB=CD pattern also. Have a great week!

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