I have always stated that the sole aim of trading is profit, yes with your blend of temperament. That is true to no small measure. You also need to know when not to over trade especially when you are on the loosing streak side. To better explain this, I will illustrate using the Gbp/Usd pair and using todays trade so far.
You will need to pay attention to this very well as it makes the difference in your profit and loss trades.
Now look at the two(2) charts of gbp/usd on 5mins and 1hr time frames and pay attention. Also check your 4 hrs time frame too
Now look at the 1hr chart, even if you don’t know how to trade, the trade setup tells us definitely to sell the gbp/usd(technical), backed up by bennanke testimony(fundamental). Now incase you are at a doubt when to sell, then look at the 5mins.
When the stochastics hits above the 80 peripheral and the macd is now tending negative, then your sell condition is in place. Place your stoploss on the higher high candle stick and you can use a trailing of say 50pips to pick enough pips and go take care of other things. You could set your profit to 120pips, if you are not greedy or 200pips for the greedy ones like me.
You could also pick extra pips on the 5mins chart by ensuring you place your buy when the first sell signal is seen in a down market. Confirm this with the 1min chart.
I will like to drop my tech stuff for now till later.
All the best in your trades.
