Ok so I work at a large investement firm, but like most here I aspire to be a trader. I've secretly started trading FX from my work computer here and would like to bounce ideas off others during the day. My style is a discretionary swing type of trading. I just entered a short EUR/USD trade at 1.4740 with a stop loss of 1.4760 and target of 1.4620 I'm risking 20 pips to gain 120 or 1:11 risk/reward. There is a lot of resistance beyond the 1.4750 area so I think the entry/stop is reasonable. Any thoughts?
I think the 120 pips gain you are going for is too much with a 20 pip stop, and my feeling is that the stop will get hit before the target of 1.4620. You do have a nice 20 pip profit at this time though.
I have no thoughts positive or negative on the trade but I would reconsider the math you used to arrive at 1:11 risk/reward.
Also, I would really like to keep this thread active but not OVERLY active. If we could get a few like-minded individuals posting trade ideas here that would be great. When I say like-minded, I am talking about simple trades and only go after a handful each week. If we can bag a couple hundred pips per week with proper money management, it would be quite lucrative.
I'd have to disagree. The stop is placed just above heavy resistance. I'm trading this on a 4hr chart and actually considering moving my target level down to 1.4430 or so. I'll see what Asia and Europe bring tonight and evaluate from there. If the stop does get strongly taken out, it would be a good case to reverse the position and go long. Either way, I feel that my stop is a good "reversal" point and keeps the trade black and white for me.