Technically Speaking
Euro has broken support at 1.0950ish level going back to July. The next level of support is down toward 1.08.
The line of least resistance seems to be to the downside at the moment.
What to do?
If you are short, nothing to do but wait. Hold onto a winning trade for as long as possible.
If you are long, I would be looking for a close back above the 1.0950 level pretty soon. The longer it trades under July's low prints the greater the chance the move could accelerate to the downside. Make sure you have a "get me out" price and honor it.
If you are looking to get long, the 1.08 level seems like a good spot to wait for.
My trading checklist, even though they are simple, give me structure.
Is this trade worth taking?
* Where is the R/R right now?
* Is the market trending or ranging in the time frame you are watching? If trending, trending which way?
* Is price currently at a level that is obvious to all market participants? Remember, it is their orders that will push your trade to profit or loss. What are other traders seeing?
* What is the price action? Is it obvious?
If the answer is yes to all three questions, take the trade.
If two of the answers are yes, use your best judgment.
If only one of the answers is yes, pass on the trade.
There are exceptions, know when to use them.
Executing a trade
* Check if there are any major economic events within the next 24 hours.
* Make sure the position is sized correctly when entering the amount.
* Make sure the stop is in place before the order is executed.
* Make a notation in your spreadsheet about why you took the trade, targets, stops, etc.
End of day
* Make sure stops on open positions are correct. Adjust as needed.
* Execute new trades.
OVER THE LONG TERM, THE WAY TO WIN IS TO HOLD ONTO YOUR WINNERS, AND CUT YOUR LOSERS. IT IS AS SIMPLE AND AS HARD AS THAT.
Euro has broken support at 1.0950ish level going back to July. The next level of support is down toward 1.08.
The line of least resistance seems to be to the downside at the moment.
What to do?
If you are short, nothing to do but wait. Hold onto a winning trade for as long as possible.
If you are long, I would be looking for a close back above the 1.0950 level pretty soon. The longer it trades under July's low prints the greater the chance the move could accelerate to the downside. Make sure you have a "get me out" price and honor it.
If you are looking to get long, the 1.08 level seems like a good spot to wait for.
My trading checklist, even though they are simple, give me structure.
Is this trade worth taking?
* Where is the R/R right now?
* Is the market trending or ranging in the time frame you are watching? If trending, trending which way?
* Is price currently at a level that is obvious to all market participants? Remember, it is their orders that will push your trade to profit or loss. What are other traders seeing?
* What is the price action? Is it obvious?
If the answer is yes to all three questions, take the trade.
If two of the answers are yes, use your best judgment.
If only one of the answers is yes, pass on the trade.
There are exceptions, know when to use them.
Executing a trade
* Check if there are any major economic events within the next 24 hours.
* Make sure the position is sized correctly when entering the amount.
* Make sure the stop is in place before the order is executed.
* Make a notation in your spreadsheet about why you took the trade, targets, stops, etc.
End of day
* Make sure stops on open positions are correct. Adjust as needed.
* Execute new trades.
OVER THE LONG TERM, THE WAY TO WIN IS TO HOLD ONTO YOUR WINNERS, AND CUT YOUR LOSERS. IT IS AS SIMPLE AND AS HARD AS THAT.
