A recap of my USDCAD position; a test of patience
I went short on USDCAD pair a few days ago, and I promised that I would come back here to publish my final results. I know many of you did not believe that this trade would turn profitable. But it eventually did. I am so sure that at least 90% of new traders who entered with me in the same exact spot ended up canceling their positions when they saw the trend moving against them by 40 pips or so.
Just in case you didn’t read that article, you can find it here. I was using a cTrader account by the way, and from that chart, you can see that a major breakout had occurred, thus indicating that the bears were about to take charge.
You should be able to see the white line slopping upwards and touching 3 critical points — and I already knew that I was dealing with a nice trend line here. I believe that most traders drew this line with me to watch for a potential breakout.
The breakout was confirmed by a strong bear bar, and that is all I needed to take 10-20 pips profit. Even if you had put a Sell Stop order right below the confirmation bar, you would have happily smiled to the bank. That is what I did, and you can see that this confirmation was followed by other small red candles (2 to be exact).
I went short again
Right after taking a profit in the first position, I Sold again after the 3rd red candlestick had formed (with long shadows on both ends). This time I was targeting 20 pips.
I entered the market on the low end of the shadow, and from that point, it looked like the market was going to turn against me. This can be observed at this point where a doji with a small green body and another relatively bigger green candle had formed.
At this point, the market was very slow. Most traders who had chosen to sell around this area were most likely knocked out of the game by the slight correction from the bulls. If you had put your stop loss around 40 pips, chances are that you were kicked out of the trade prematurely. That’s why I always insist on placing bigger stops to give chances for the back and forth swings in the Forex market.
Anyway, it took 2 days of waiting and testing my patience to finally see the bears taking over strongly. In those 2 days, I was in the red zone, and you know how it can feel if you stay there for 2 consecutive days. If you are not experienced, you will end up canceling the position and taking a loss. But I did not do that because I trusted my judgement.
So the following chart should highlight what happened afterwards. Then you can believe what I am telling you:
You see what I mean? It all boils down to having patience. Even if you know how to trade FX or are having a good strategy which you think can work in all conditions, you will fail if you don’t have patience. This position took two and a half days to turn in the profits. 20 pips TP target is considered scalping. Therefore, next time you scalp and your trade fails to close in profits in 24 hours, wait. You will come back here to thank me.