Dear fellow traders, every now and then good trading opportunities appear in Forex market. It is the responsibility of a Forex trader to benefit from the market. This means, there is no place for a lazy and lethargic currency trader. If your head is some place else and you are trying to make money in Forex trading then you will lose money for sure or you are most likely going to miss a profitable trading chance. On a daily basis, I run a Forex Live trading room using Elliott wave analysis and I saw the following Bearish Running Triangle trade setup in USD/CHF daily chart on 16-May-2017
Commentary: Sell trade is now open after a bearish break down in price (break of wave d low). So, I entered with a sell stop pending order at 0.9858 with a stop loss at 0.9967, no profit target for the time being.
Commentary: Price keep falling down like a knife in my favour and it looks good to see profit.
Commentary: I placed my take profit at 0.9692 and market is almost there to hit it.
Commentary: Now comes the tricky part, and it is called “Trade Management”. I am in profit but it is an open profit and market could reverse on me. So, I lower down my stop loss and locked +103 pips profit. It is possible that market may miss my target of 0.9692. My rule is when you are in profit, you do not give back the profit!
Commentary: It is almost there to hit my take profit level at 0.9692, just need few more pips but I am also trying to control risk. Meaning, I have locked in +103 pips profit as well.
Commentary: USD/CHF price action reversed on me and clearly missed the take profit level with a margin of 1 pip but I am not surprised as I was already prepared to face such a situation.
Result of the trade: +103 pips profit. Trade is closed and I am out of the market in USD/CHF daily time frame sell trade. There is another good lesson to learn after watching this trade, always take care about risk. Once you are in profit you must lock in some pips. If market misses your take profit level then you still get out of the market with a good profit.
Now, if you missed the move, no need to worry about it because more Elliott wave trading opportunities are going to appear in Forex market, soon. All you need to do is to use Elliott wave analysis and wait for a good trade setup to appear again on price charts.
