So what is your answer to the question above? Should you monitor your trades? Have a quick think before you proceed reading 🙂
If I have total full control over my time, my answer will be to monitor my trades all the way. But let’s be realistic, we can’t possibly be watching the computer screen all the time as we have our lives to live, agree?
“Traders should always look to monitor their trades as much as possible. WHY?? Reason is that the market conditions might have changed and you ought to exit the trade prematurely”
Below is what happened to CADCHF
Manage to sell the pair at the completion of the Bearish Shark, stretched the targets and closed partially at TP1 before the market closed last Friday night. I had another batch which I held over the weekend.
On Monday, when the trading week started, my smile widen as the pair gap down lower. My day began and didn’t manage to monitor the pair the entire day. Only to find it being stopped out at my entry price (protected at breakeven).
Looking back at the charts, there were hints that the Bulls were back into this pair. There was an Inverted Head & Shoulder at a Sell Zone, hinting to us a potential reversal. By monitoring more closely, I could have protected an additional +50pips of profits.
- All trades should minimally have a Stop Loss level for protection
- Targets to automatically exit your trade if you are not monitoring
- Continuously monitor you trades to check if the market conditions have already changed, hinting to you for an early exit