In this post today, I shall be discussing with you a trade that was taken yesterday as one of the user of my Forex Trade Copier Service ask the below question
Below is the question:
Hi Kelvin, I saw that you enter a SELL trade on the EURUSD on the most recent trade and once you exit it before it hits the target profits, the price started to move up tremendously.
Why did you exit it earlier without letting it hit the target profits?
This is a trade that was taken yesterday with the trade copier service. Shortly after I exit the trade manually with 25 pips profits, the next candle started to rise by 60 pips which could have hit the stop loss that I have set.
In fact, I have written a blog post on this topic before which is called Multiple Candlesticks and that is exactly why I exit the trade earlier without letting it run to the target profit which was also not hit in the end.
Below is the link to the post that I have written
I have seen that the price has been testing the same level for 8 times in a row which forms what I call the Multiple Candlesticks and this is often a sign that the price has hit a very strong support level.
Once I see that the candle breaks through it with small body, I decided to exit it as I feel that the momentum of the down move is no longer there.
True enough, the next candle shot up by 60 pips which could have hit the stop loss of the trade.
All these small techniques comes from my own experience in trading and I will always write it down and share it with all my readers here in my forex blog so that you guys can improve in your trading.
Even after years of trading forex, I still discover new stuff in trading every now and then that can help to increase the winning percentage of my trades.
For those of you who are new to trading, trading on a demo account is a great way to increase your exposure and feel of the market. Something a traders gut feeling can be a great way to avoid a losing trade. Do note that it is possible to trade forex profitably without a good strategy on hand.
If you are still guessing your way in forex trading, it is time for you to settle down and learn a good forex strategy.