Sometimes it takes a while.

Hi gang,

The above charts show a trade I am in at the moment. As you can see, (hopefully) the EUR/USD pair made a wicked pinbar on Monday the 17th of March. This is a major reversal signal for those of use that use price action for our signals.

Well, I went short needless to say. And waited. And waited.

There were moments where I could have taken as much as 50-80 pips before it went right back up. I have to admit, it was very tempting to do so. However, as I have been reading Reminiscences Of A Stock Operator, I am working on letting trades run a little more.

Because of my patience, I now have 250 pips locked in. That's a good week in itself as far as I am concerned. Add in some trades in Gold, and this has been a great week.

I believe the biggest thing to remember is that no matter what happens, you are never risking more than your original amount. As I was once 50 pips up, then down as much as 11 later, I had to remind myself that I was still only risking what I thought was alright in the first place. I could never lose more than that amount. Granted, you have to figure out a way to lock in profits, because it's counter-trend if no other reason.

So this was my thinking:

1) This is counter-trend. A target isn't a bad idea, but as long as I can keep an eye on it, I will let it run.

2) Not only is this counter-trend, but the actual break was fast and hard. Fast and hard tends to stop suddenly as well, so once it gives you a huge bar, time to tighten up stops. (I know this sounds contradictory, but there's a "feel" moment has, if you just watch long enough.)

Hmmmm......funny I am writing this, they just took me out at 1.5425, a gain of 250. Ok, so I gave back 20 pips or so. 1.54 was strong support anyways.

Which, brings up another point about patience, there were several times I could have gotten out of this trade in the last hour or two....but I HAD TO LET IT TRY TO BREAK THE 1.5400 MARK. If not, I would have been upset. However, once I was up 250 pips, there was no reason to give a ton back either.....I mean, Come On! :-)

Also, there is the chance that it does go lower eventually. That's alright, we can't get every pip. I am grateful that the Forex Goddess has bestowed this lesson upon me.

The single biggest piece of advice I can give this week is to buy the above named book, "Reminiscences Of A Stock Operator", by Edwin LeFevre. Read it, re-read it, and think about what's being said. There will be no "trading plan" to make you rich. No "When the 20 Ema crosses the 50 EMA, buy here type of thing." However, there are some MAJOR keys in it.

I cannot speak highly enough of this book. Another is Rob Booker's "Adventures Of A Currency Trader." They are basically the same idea, education with entertainment as well. The truth is, the key to riches is within you. You ARE the system. It took me a lot of frustration to realize that.

Good trades,
Clockwork