Tuesday, October 04, 2011

30 pips per day

I've decided that I will try to do 30pips per trading day.  At least that's the plan - there will be days in the week where I will not any trades. I've learnt from many hard knocks that sometimes the best trade is to not trade at all.

This morning I took a counter-trend on $AUDUSD. $AUDUSD has been on the watch-list since it has been in a long "down-trend" (1400 15Min bars away from the SMA800 as of Monday this week).

I set it up for a 2:1 risk/reward - Buy entry was at 9499, target at 9541, stop loss at 9477. Break-even was at 9521. Around the 20pips profit mark (Close to 1:1 risk/reward), I was starting to get jumpy so I took it out and closed with +20pips. Point to note, when it hit the half-way point to the target, I changed change the stop loss to break-even. This is another new step, recently included into the New and Improved Trader Mom's Set of Rules to Trade By.
AUDUSD 5Min/15Min

Here's a funny point about this newly added "set to break-even" step of setting the trade:

Every trading book worth it's weight will have a chapter titled "money management". And I have read these chapters in all the books that I own. Well, it took me all of 2 years to understand what it  actually means and how to implement this in trading!
Happy Trading!