I am completely new to trading, still at the level of trying to figure out how to be profitable using a demo account much less real money. However, I hope that if I try to vocally express my trades each day it will help me analyze what I have done right and what I have done wrong.
So here goes my first trade. This is the daily EUR/USD chart and we see there was a bullish move from July to september. Since then there have been three failed attempts to reverse the trend and each failure is weaker then the last. Also, the last 3 candles have formed a triple bottom.
I am using these three failed attempts to assume that the price will eventually work it way going back up and hoping since it is making higher highs and higher lows that it will reach it’s highest high in September before it takes out these lows of these last three candles. My stop is therefore just below these candles (red line) and my take profit is at the high of September (green line) and I entered at the arrow.
This is a 1:3 risk:reward trade.
