Sunday, July 30, 2006
Learn Online Forex Trading - My trade on USD/CHF
Learn online forex trading - My trade on USD/CHF
In my details of my previous message I mentioned about my open online forex trade on USD/CHF.
Till that day I was in a profit of 80PIPS..Pretty handsome.. isn't it?? And the trade was still open. Lets look at the details again -
Trade - Long
Entry - 1.2451
Stop - 1.2405
Limit - 1.2575
Risk/Reward - 1/2.5
Here is what I did when I was in 50 PIPs profit - I moved my stop loss to my entry point. So, when the currency was at 1.2501, I moved the stop from 1.2405 to 1.2451.
Why was this done? This is to secure your forex trade. So, what would happen when the market reverses from this point onwards? It will hit my stop and I'll get out of trade with no profit and loss.
After that point onwards, I started moving my stop after every 25 pips movement, so when the market read 1.2526, I moved my stop to 1.2476. This way I started making profits.
At 1.2547, the market started reversing, so I closed my trade at 1.2495.
This way I made 44 pips on this online forex trading.
The concept of moving stops to secure profit is a concept of money management. Please learn this as part of online forex trading. This will ensure that your trades are ending in atleast some profit.
Oh..By the way, my target was being driven by concept called Double Top. If you look at the hourly USD/CHF online forex trade chart, you'll see that the resistence is at 1.2590. So, to be conservative, I took target as 1.2575.
Thats all in today's message on online forex trading. Please visit again tomorrow where I'll mention details about another online forex trade that I did the next day.
Keep visiting to Learn online forex trading.
In my details of my previous message I mentioned about my open online forex trade on USD/CHF.
Till that day I was in a profit of 80PIPS..Pretty handsome.. isn't it?? And the trade was still open. Lets look at the details again -
Trade - Long
Entry - 1.2451
Stop - 1.2405
Limit - 1.2575
Risk/Reward - 1/2.5
Here is what I did when I was in 50 PIPs profit - I moved my stop loss to my entry point. So, when the currency was at 1.2501, I moved the stop from 1.2405 to 1.2451.
Why was this done? This is to secure your forex trade. So, what would happen when the market reverses from this point onwards? It will hit my stop and I'll get out of trade with no profit and loss.
After that point onwards, I started moving my stop after every 25 pips movement, so when the market read 1.2526, I moved my stop to 1.2476. This way I started making profits.
At 1.2547, the market started reversing, so I closed my trade at 1.2495.
This way I made 44 pips on this online forex trading.
The concept of moving stops to secure profit is a concept of money management. Please learn this as part of online forex trading. This will ensure that your trades are ending in atleast some profit.
Oh..By the way, my target was being driven by concept called Double Top. If you look at the hourly USD/CHF online forex trade chart, you'll see that the resistence is at 1.2590. So, to be conservative, I took target as 1.2575.
Thats all in today's message on online forex trading. Please visit again tomorrow where I'll mention details about another online forex trade that I did the next day.
Keep visiting to Learn online forex trading.
