Ivan's Trade Thread, part II

Long EURAUD @ 1.9750

Profit Target: 2.00
Stop: 1.9675

UPDATE
Added 50% on top of prior position @ 1.9715 entry

 

I don't post all my positions, but I'm with you on that. My entry is a bit more attractive, but I think you're on to something.

 

I was stopped out before the price hit 2, otherwise that would have been the objective.

Just goes to show that I set my stop too high.

 

EURAUD

This thing moves like crazy - 90pip fluctuations within minutes.... up and down, up and down

 

Which is why you need deep stops. Scale down positions to compensate for the risk.

 

I opened with a small position so I'm good on this one.

Someone could just trade this for an hour or two per day and make a living (if they hit it right). Wild stuff.

 

Someone could also make a living playing roulette in a casino (if they hit it right). Doesn't make it a viable living.

 

Very true - my point was that it moves enough often enough to present ample opportunities to earn pips

 

I have found that the key to making a living is proper position sizing. When the euro had a daily average true range of 70 ticks, I found myself trading 3-5 contacts. The ATR has expanded greatly, and my position size is now 1-2 contracts (usually just 1).

Same level of risk, same profit objectives in terms of R:R ratio, but position size is the variable.

Best Wishes,

ddaytrader

 

To quote the fictional John McClane;

"Welcome to the party, pal"