The question is, did you make $500 while trading a $50,000 account, a $5,000 account, or something else? What was your risk on the trade. Did you risk $2,000 to make $500 dollar or did you do it correctly by risking $250 dollars to make $500.
Risk Management is something that will keep you in the game for long and it is "THE MOST IMPORTANT" factor in terms of Successful Trading.
Anyway, we talk more about this important factor in much detail inside AIMS Membership Site. Join and take advantage of the 50% discount. >>>>>>>>>>>>>>>>>>>>> [JOIN MAILING LIST TO GET 50% DISCOUNT]
The Setup 1 on EUR/JPY that was Waltz Signal on D1
Lets explore this setup 1. In the chart below you see I have marked the chart with Days and Numbers. This particular setup took 4 days to get ready/form. And then it took 2 days to complete.
Note that I will talk only from the perspective of looking at the chart at the end of the day. So right at the dotted vertical lines. These are called "Period Separators". Since this is an hourly chart it shows NY Close which is 10pm uk and 5pm NY. And since Forex is 24hrs Market Monday to Friday, the market opens as soon as it closes.
Day 1: There was nothing great about this day. It did not give you any information. Only that market stayed sideways during these 24hrs.
Day 2.: This day is the big day. You received some good information of this pair. Market has dropped considerably on this day and closed in the right area too. You can see price pulled back up towards the close of the day but still the pullback was well within the limits. What is the limit? well to put it simply it did not go on the other side of purple. (Purple is a concept explained in the AIMS The Setup eBook) [Free Download available]
Day 3: This is the day you waited for. You waited if price will create a boxed market. Now Gator is sleeping, price is inside the tight AIMS Box and Purple is correct.
Day 4: You had your orders setup for sell orders based on Day 3's Box Range. You were expecting it to be taken and the sell trade triggered but it did not do so. Setup was still valid so you left the orders in.
Day 5: Today the market has taken your Sell Order in. The market pulls back up violently but does not hit your SL which is above the high of Day 4.
Day 6: Today your Take Profit Level was hit and you've banked a good 2R Profit. (if 1R was your Stop Loss i.e .RIsk then multiply that by 2 to get 2R Profit). You risked $250 dollars and set your Take Profit level just above THE TARGET ZONE 1. This is an amazing concept which is part of AIMS The Setup 1. Happy Days.
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