I wanted to share this trade idea because its a great example of how to manage your trades once the market moves in your favor.
Notice that since I got in a big hurry to get in this trade, my entry, while decent, could have been much better. If I had just waited a few more days with a nice limit order sitting on the red sliding parallel, then I would have had an outstanding entry location with an extremely small stop. Well...make a better plan next time and deal with this trade now.
Now that we have formed a nice new swing low as price is climbing upward, I can move my stop upwards to the red line at 1.0905. When another swing low forms and its confirmed by taking out highs, I will move my stop up again below that.
I'm also working my profit target order upwards along the upper channel as price moves to the right on the chart.
Great Trade. How do you handle your emotions if you were to let it work its way back down to your new stop-loss which is like watching a 100 pips of non-realized profit vanish out your account. I'd be tempted to take profit now.
iTradingForex
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The trick is to not watch it so closely. I'm not constantly peaking at my trade since these are four hour bars. Also, since I wrote in my trading plan exactly where I wanted to take my money, that gives my emotions a check whenever I feel like just jumping out. Sometimes it does come back to tag you out. Remembering that this is just one trade of many helps as well.