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Break Even Trades are Fine By Me

Price continues to be a bit choppy on the currency markets. Forcing trades is a bad thing. When you open your trade station, whether it’s in the morning or at night, your expectations should be to only trade what you see. Sometimes trades don’t develop the way you want them to and then you may tend to force your entries. Today I didn’t follow my rules and might have forced a trade that probably could’ve been avoided.

Although it worked out to be a break even trade, it wasn’t necessarily a good set up. Had I waited another 15 minutes I could’ve gotten in on a trade at an old resistance level that became support. This trade will be talked about later in this post.

I did get to my trade station a bit late today and finding a good set up took some time. I took my trade while waiting for price to move up to a resistance level or down to a support level. In the end, I got caught in the middle of a channel that formed an average setup. These type of trade setups do occur sometimes, but the goal is to not take these trades at all if at all possible. Learning from this particular trade is definitely something I will push in the future. One of my tops rules is to not force myself into a trade.

I had watched the price climb up to resistance level two before feeding all the way back down to almost resistance one. The price then formed a nice little wick candle at the most recent support level, setting up a potential call option trade. However, I didn’t take the trade and price moved up and started fighting a another resistance area that had been formed about an hour prior. Looking at the chart after the fact the trade doesn’t look as bad as I’m making it out to be. I did have a few things working for me, but I just didn’t have the full confidence where I should have been risking money. Although my trade ended up breakeven, price has fallen off ever since. Had I had another 5 min. on this trade it would’ve been a large winner. This is just one of those things and the key point is to stick to your trading plan.

The image below shares the trade that was the real trade of the day if I only waited a tad bit longer. Price was coming down to resistance level one which becomes the new support level. I’ve talked about this on several occasions on how old resistance becomes new support. Price hit the resistance one area given a nice little wick and had you entered around that price of support you would’ve dealt with significant pain until the end of the trade. Price bounced around the first couple of minutes before thrusting nearly 5 pips against the original entry. However, price then decided to move back up into this level. Price finished on the final candle about two pips above the resistance line. Had you got in this entry a little bit late you still would’ve won this binary option trade on the EURUSD. The image also shows how price has continued to move to the North side getting closer to resistance two again. It appears we are forming a nice little channel on the market and we’ll definitely keep an eye on this going forward.
Support Trade Holds the Line
Trades will develop all the time. Picking the right one is not so much about winning, it’s about making good decisions. If you make good decisions you’re more than likely to make money. Although the trade today was breakeven I learned from my small mistake by not waiting for the best trade of the day. We’ll see what happens the rest the week and only trade really good setups going forward.
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