This trade was a gift. It’s not often that trades work out as perfectly as this one did, but it goes to show that when you continue to follow your plan you set yourself up for the runners. I always trade my plan.
Day 1 & 2
The GBPUSD set up perfectly at the end of the day by showing a pin bar setup with a slightly larger bearish body. Beacause of this large body, I employed the ‘pullback’ strategy using a limit order to catch the ‘pullback’ in price the next day. This is something that happens on fairly regular basis in the market.
My stop loss was placed above the previous day and month’s high. There was only a small chance that this level would be tested. By the next day, I was safely in profits.
The trade progressed rapidly overnight and blasted right past the 2:1 reward to risk target. This is always my initial profit target. I had been following the latest financial news out of the UK and it was very bearish for Sterling. This was the time to not have a limit order for profits and let the trade run. Sentiment was with the trade.
A little later in the day, the trade had broken through the rising support line. I brought my stop loss down to the 2:1 RR level and closed two lots for profits. This was a little over $4k.
This was really getting exciting now. Price continued dropping like a rock. The remaining lot was closed just before the end of the day as price approached 1.5000 round number. My feeling was that 1.5000 would be a well defended level where large long positions would show their strength and short traders like myself would be apt to take profits.
This was an amazing trade which was made possible by following my plan with discipline. It employed several techniques and strategies that I teach in The Forex Market Master Trading Course.
It’s trades like these that can make your month exceptional instead of oridinary. Patience, discipline and a deep understanding of what you can expect in the maket are key to taking advantage of big moves.
If any of this seems unfamiliar to you, consider becoming a member of Forex Market Master. You can learn forex trading at your own pace, getting a complete education to be ready to take on the market.