Holding trades and today’s trading

Today I would like to discuss two momentum trades I traded today. The total number of trades I traded in both trading sessions is 22 but I would like to highlight these two. Why? Well, most of the time we ask ourselves when to fold and when to hold type of question. In the previous post I was discussing the importance of the price holding below or above the certain level.

That's something what was crucial in one of my trades, specifically in GBPUSD(see image gallery). This pair broken down an important level of resistance (see dotted line at 5525) and moved lower towards another critical level 5520. I needed to see BIDS holding below this level for some time as well as I needed this level to be tested(touched) at least two times. After this was established I went short just 1pip below 5520 setting up my first critical stop loss level above 5525 and my fixed stop loss level at 5533. In the picture I called it battle because you can see how the price after I went IN SHORT moved down then UP but stopped by critical level of 5525. After it bounced back I was bit more assured that this trade would hold. After this move the pair was unable to create HIGHER HIGH and started to creep down and after waiting for 20minutes it finally hit my target placed at the very strong previous support level (5486). If I would be impatient and just read the charts I would be able to see the price action in action :). I would probably fold due to no movement or because of the impatience. TICK chart enabled me to see the price action under the lens and helped stay in the trade until the very end.

Second trade I would like to share with you happened to be in EURUSD. This trade was initially intended as a retracement trade but my perception changed after big EURO seller came in to trade. While waiting for correction and entering into LONG position big seller came at  3008 level and moved the pair almost to the 2990 level in one second. Well that's a pretty big jump in such a short time. This changed my perception and my interest in long position got bit colder.  Anyhow the price managed to get back to 3008 level and now I was interested in 3008 level. Will it hold or will it send the pair back to 2990's? It moved back down a little and then up again right through 3008. I didn't catch this move. I was quite lucky since position made one more retracement. It was nice rounded bottom reversal just around 3008 level and I got LONG when the pair got above 3010 again. In matter of two minutes the position hit my target. So, what to take from this trade? Even if you miss the initial entry always be ready for another possibility to get in. Sometimes can pair offer a unique opportunity, special offer :). Just now, limited stock and space! Get in now or never. We have to be always ready to take this opportunity and use it in our advantage.

Amen.