USDCAD continues upward march - how to manage your trade
I wanted to share this trade idea because its a great example of how to manage your trades once the market moves in your favor.
Notice that since I got in a big hurry to get in this trade, my entry, while decent, could have been much better. If I had just waited a few more days with a nice limit order sitting on the red sliding parallel, then I would have had an outstanding entry location with an extremely small stop. Well...make a better plan next time and deal with this trade now.
Now that we have formed a nice new swing low as price is climbing upward, I can move my stop upwards to the red line at 1.0905. When another swing low forms and its confirmed by taking out highs, I will move my stop up again below that.
I'm also working my profit target order upwards along the upper channel as price moves to the right on the chart.
Some basic info on making your trading plan and sticking to it: itradingforex.com/2014/08/26/trading-plan-make-forex-trading-plan-stick/
Notice that since I got in a big hurry to get in this trade, my entry, while decent, could have been much better. If I had just waited a few more days with a nice limit order sitting on the red sliding parallel, then I would have had an outstanding entry location with an extremely small stop. Well...make a better plan next time and deal with this trade now.
Now that we have formed a nice new swing low as price is climbing upward, I can move my stop upwards to the red line at 1.0905. When another swing low forms and its confirmed by taking out highs, I will move my stop up again below that.
I'm also working my profit target order upwards along the upper channel as price moves to the right on the chart.
Some basic info on making your trading plan and sticking to it: itradingforex.com/2014/08/26/trading-plan-make-forex-trading-plan-stick/
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