EURCAD long – why I did it? Forex trading with Make Me Some Money
As I mentioned yesterday, I went long the other day EURCAD. I want to swing trade and hold out for more amount of pips rather try and scalp for 10 – 20 pips.. I am going to try and enter off the daily charts but using the shorter timeframes to time a better entry.
With the EURCAD, I am using stochastics and MACD as an indicator. In the daily charts, the stochastics are moving up from the 20 mark and the MACD haven’t yet crossed but they are looking to do so. Looking at the 4 hour charts, the price action looks like there was a previous area of resistance around the 1.4470 region. The price action had bounced off this and was moving up so I went long at 1.4444 with a 100 pip target and stop loss.
When the market had moved 30 pips, I moved the stop loss to entry to protect my capital. The markets are still closed today for New Year but my broker platform is currently showing that my limit has been hit (it looks like it’s 20 pips above my limit). I wanted to manually close it out and realise the profit but as the market is closed, I can’t do it. We’ll just have to wait to see what happens when the market is open.
My previous Forex post regarding the Forex competition where I went short EUR/JPY and long NZD/USD, I could have held out for longer. I closed the EUR/JPY at 112.88, it is now 111.70 so has fallen an additional 100 pips. The NZD/USD trade, I closed at breakeven as the market looked a bit dodgy.. it did actually shoot up to 0.7788 before falling away.
It is true that it is very difficult to hold winning trades for longer and this is something that I am hoping to do moving forward. Don’t worry about the smaller amounts but the larger amounts. I’ll move my stop loss to entry as soon as my trade moves my direction to limit risk.
(click for larger picture)
