@tonicasert
Tuesday 6.35am - Cable (GBP-USD)
Currently at 1.5315, up from its low of around 1.5190 yesterday.
I have taken a short positions on a medium term trade.
(1) Day Trade
Cable short @ 5316, profit target @ 5200 (116 pips) stop @ 5380 (64 pips)
Profit to loss ratio - 116/64 = 1.81
I take trades whose ratios are above 2, therefore I didnt execute this position even though the indicators are all showing a short.
(2) Medium Term Trade
entry at 1.5315, profit target 4940 (375 pips) profit target two 4850 (465 pips), and my stop loss is at 5500 (185 pips).
Profit to loss ratio (at first target) 375/185 = 2.02.
I have placed this trade looking to close it in a week, maybe two.
I can take this short trade as the indicators are all showing a short, and the profit ratio is within my range. This means that out of ten trades, if I loose 5 and win 5 trades, I still end up in profit.
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