Thursday, March 13, 2008

Chart of the day--it start with a pinbar


Hi folks,

Here is my trade today..a nice profit day..what make this chart so special ? I can tell you that this trade is an opening gate to another level ( I hope ).It's been sometimes I want to do this type of trading.I call this type "building the wealth".Usually I enter the trade then wait until the tp or sl got hit-- yeah sometimes i get out manually depend on the price action signal.And yes after I will try to spot another opp on the other pair and will act on some good setup.So basically enter a trade then wait till it get done by the price or seek another pair.But this trade/chart that I called "building the wealth" is another story..it's a averaging trade, theoretically is adding to a win position.What make it so special? It against all your ego to take out the profit even from the very first open the trade.As the trade mature and the profit float, usually you'll find a million reason to take it out and secure the profit, just for you to see after you take it out the price continue to your favor and you miss the opp :) hell yeah it happen all the time.I manage to open a trade on this pair GBP-CHF with 1 lot and after a nice 85 profit, the market come back to my original position at first and even go against me for another 55ish pips ( my oh my..:) at this moment trader usually say 'shit i should take the first 85 profit..now I have to suffer -55 instead of those profit--lol...I do the same actually but this time I put everything on my desire to take my trading level to another level, My original Sl is on the pin highest and the price only hit 68% of the pin (for those who don't understand what the heck I'm talking about the pin and their setup, do your self a favor and make a quick search on FF jim16 free thread).As the price goes down I added the second lot a moment after the candle open (the big bear candle or 2 candle before the last candle on the Chart Pic), and you know what?? the price even go against me !!..but as I said..PA really help my emotional pain.I see the pinbar, hammer then a spinning on the chart, it's a sign of reversal..or at least retracement...and then the price move to my favor for more than 100 pips ( so now i have 200 pips since 2 lot ), "but again--damn, not again"..the price rebounce and and shake me :).not really shake tho..been facing the same old problem since the very beginning of my trading career.Then the price move down again and this time I add 2 lot with my stoploss on my 2 previous order move to BEP of the first order, and my third order stoploss just few pips above my other stoploss.Then I move my TP to lowest range of the day (well actually few pips above it since you have to understand about bid and ask mechanism in trading).Finally my third trade place on , and the lots getting bigger ( so now 4 lots total), but my risk also reduce significantly , no need for another nerve shaking, the price hit my all tp on 2.0588..total 341 pips :).Nah..im tired already...Im going to sleep but a friend of mine scrap me on orkut..heheheh.Im happy tho.Next target to do a "building the wealth" trading...and do it on longer timeframe.Wish you all the best.Laimas

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