The past several weeks have been an adventure with “spikes” and “jumps” in price, hasn’t it? Wow!
Well, it all makes sense, especially when you consider all the insanity going on across the financial world. Greece, Portugal… Euro Zone issues… the US government digging into Goldman Sachs (a HUGE player in the forex market)… with all of this going on… the market is understandably “nervous”.
Even so, there have been some NICE moves to trade in both the EUR/USD and the EUR/JPY. The challenge has been… not getting hit with those spikes. So, being extra careful in those entries has been very important… but so has the ability to say “oops” and exit when there is a spike… or say “oh well” and HOPE that it will recover. I’m not much for “hoping” when I enter a trade, so I will generally still exit quickly when price spikes when I’m in a trade. Thankfully, this does not happen often, as I wait for all of my setup to form and everything “makes sense”… and I’m willing to TRY the trade… whatever the outcome may be.
Where these spikes DO have a big impact on my is… my desire to exit quickly. I would much prefer to bank a certain profit, than HOPE(?) that price will continue in my favor. With price bouncing around like it has been, I have recently tended to exit with small profits even on “big moves”. I can live with that… because I feel NO STRESS when trading this way… exiting quickly… Exit Easy.
But, not everybody is this way. A fine gentleman the other day told me that he is VERY willing to Hold Bold… MUCH longer than I would consider doing. This is perfectly fine! We are all of different personalities and preferences. But, I do want to mention to you that, especially when just getting started with Logical Forex… MANY SMALL WINS BUILD YOUR CONFIDENCE… AND YOUR ACCOUNT EQUITY. And, that’s Always A Good Thing.
Earlier today, there was a nice trade that setup around 9am US/Central….
### EUR/USD Market Structure
As you can see, this was after a News Event that pushed price up quite nicely, and now we are at a clear Decision Point, shown by the Logical Forex Magnet Lines, and the Market Structure.
Of course, we are not going to predict what the market will do. We will watch the Magnet Dance and let price TELL US what it IS doing.
*** Trade #1
Now, there were two ways to exit this… Exit Easy or Hold Bold. You probably already know what I did…
When the market “stalled”, I did an Exit Easy and took my Easy Profit.
The other option would have been to Hold Bold. Sometimes I will do this…. but not this time… but it wouldn’t surprise me if several other people DID Hold Bold…
Remember… for the most part we are Forex Scalping… so take your profits quickly… using as many lots as you can afford to trade responsibly… and when the price moves fast in your favor… and you are calm, hold on for a while. (You can learn more about how to trade responsibly in The Secret Forex 4.2 Formula, which includes access to a special planner/calculator so you can tailor things to your own trading needs.)
Again… YOU have to decide what works for you, but make sure that it causes you NO STRESS. Keep Logical Forex easy on you, where you feel confident and calm… and your trading will be a fun and profitable experience… whether you Hold Bold or Exit Easy.