New to all this, so please excuse the ignorance. If I have made a profit and the pair seems to be stagnant; should I just sell it? Does low volume indicate reversal happening? I am talking about the eur/jpy.
Thanks
What’s it at in correlation to the support and resistance and or fib lines? If you think it’s going to bounce then i’d just sell it. But if the candles give evidence of a breakthrough then ride that sucker after you tighten up your stop loss for some guaranteed profits.
The trick is to choose that BEFORE going into the trade. There are as many answers to that question as there are traders. I trade using donchian channels (DMT). So for EUR/JPY, I went short back in January:
In the first week of January, EUR/JPY went below the 200 day moving average. I put an entry to go short just a pip below that low and got in short the next week. My stop was to get out on the next fresh four week high. Since then, the four week high fell to 855 pips below my entry before it was taken out this week. So my exit with a profit was: “I will exit on the next fresh four week high”.
That is one of many ways to take profits. Your task is to find one YOU can use consistently.
May you profit like a prophet and may the forx be with you.
-Adrian
Thanks, still learning and I am getting a feel for it but since I am day trading I decided to exit. Made a little profit. I guess the market is just really slow after London closes.
Thanks, I am not familiar with donchian channels. Another thing to learn about.
First of all, you need a comprehensive plan [B][U]before[/U][/B] entering the trade. There are many reasons why traders succeed, but only one cause for failure. It’s either failing to follow a plan or not having a good plan/or any plan in the first place. What I describe below will aid in formulating that plan. Never rely on emotions to exit (unless that is part of your plan :o, i.e. exit when you feel hopeful and stay when you feel fear)
I’m going to speak from my experience as a day trader. Day trading is not complicated, but you need to approach it from a fact-based/statistical angle.
[B]Fact 1:[/B] Currencies move everyday, and about the same each day.
This is a damn simple fact, but many do not grasp this. So one factor you might want to consider before exiting is how far has the pair travelled already? London sessions EURJPY I would say 60-80 pips in one direction is normal. If it hasn’t even breached 60 pips, then holding is usually the right call IF…
[B]Fact 2:[/B] Currencies trend.
If you are trading with the 1H chart and 5 min chart trend that is. The fact is, markets do exhibit trends, and as long as trends exist, there’s always profit potential. It’s as simple as that. Do not try to fight it. Don’t try to predict when it’ll end. If things don’t align, don’t trade. It’s just plain ol’ probability. You want to put the odds in your favour.
With these two facts alone, you can start crafting simple trade exit ideas. Generally you want to target the daily volatility range when trading with the trend. But at the same time you want to protect your profits so you ought to shift your SL up progressively. Give it room to breathe, but not too much. I would say always maintain a risk-reward of 1:1 minimum at ANY point during the trade. This means if your target was 60 pips and price moves up 40 pips, you want to shift your SL up to at least +20.
Intraday trading is not complicated. But too many people try to approach it with weird ideas that are not based on facts or data, and that’s why they fail.