By Boon Hooi Wee on 6 Sep 2018 | Filed under Currency Pairs, News, Online Education, USDJPY | Comments
I guess this is one of the million dollar questions that traders would like to have an answer to. Did this come across your mind too? I’ll start off the answers by saying that there is no ‘holy grail’ in trading. Sorry to burst your bubble but I am very sure there are some of you who are still scouring the internet to find it.
However, all hope is not lost. There are many ways to increase the probability of success in your trading. Remember it is all about trying to increase your profitability expectancy and repeat the process over and over again.
So this is one of the methods I use to make my decision. Let’s have a look at USDJPY H1 chart.
Please don’t get me wrong, from the Technical Analysis point of view, there is nothing wrong with taking profits at these areas. As a matter of fact, I did take some profits off the table. You should too. Some money in the pocket can actually do wonders to boost your trading psychology.
Now…. let’s evaluate further. Why did I want to leave part of the trade running? Yes !! I have a stretched target in my mind/analysis. Not because I feel like it, but instead it is more of a calculated risk. The remaining past of the trade has already been protected with my SL at break even. In actual fact, there is no more risk left on this trade.
The reason for stretching my targets in this case is because I saw a bigger Harmonic Pattern completing lower. This would be an buy zone formed by the Harmonic Pattern traders. So in short, I am using a different bigger pattern to take profits on my smaller pattern trade.
By knowing your how to evaluate your charts well, you will be able to make a more informed decision. I believe that knowledge is key for you to develop the skills & ability to analyse the markets better. This will definitely make you a better trader.
If you are not sure about the triangles I am drawing in the charts above, you are most welcome to attend my next 3hr Classroom Workshop in Singapore. Next week on the 11th Sept (7pm). I will be sharing some pointers on trading and showing you how to draw one of my favourite Harmonic Patterns
RSVP via our website event link below, share this with your other friends:
Trade well and trade safe