Trading the EURO at the bottom of a Trend Channel

12th Feb 2013 - Trading the Euro

So today I’ve entered long trading the Euro at the bottom of what looks like an ascending channel. Of course, this is my interpretation and the points within the channel never exactly match up but what is clear is that the price action have generally been moving upwards.

Within an uptrend, the optimal point for entering is the higher low as you can put the stop below the low and if you’re right, you should benefit from a good risk/reward trade. The exit would either be the top of the channel or if the price action breaches the previous days low which is how I intend to capture and lock in profits each day.

I know I have had problems with holding trades to fruition but lately, after these losses trading the markets recently..  I know that if I keep closing out early, my account is going to really suffer.. this has strengthened my resolve to keep the trade in play to my rules. Also, losing money trading is not harming me (I’m still able to feed myself, have a roof over my head etc)… it helps to have money in an account that you’re not depending on. It’s funny but these things help  my trading psychology which ultimately should make me a better and more profitable trader. I’ve also seen that one winning trade from a large trending move can make up the losses from 10 losing trades.

Ok, let’s hope we do well trading the Euro with this move!


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Category: Forex trader, Forex trading, money, Trading