We have another contraction and expansion strategy here on the cable and there's a potential for over 250 pips rally in the next few days and this trade has a very good risk to reward ratio. You can either buy or wait for the first rally and then buy after the retracement. So I think we all know how money management is important in trading and when it comes to a trade like this, If I get in at the current entry price I never risk more than 1% of my account and some people might ask, so how the hell do I make profit if I just risk 1% of my account? Well, i'm glad you asked and the reason I do that is because with my strategy everything has to do with the odds so I only risk money on the line when the probability of winning is high, so the probability of this trade being a winning trade is only about 60% and is that good enough? For most people it is but I will not risk more than 1% of my account on such odds. Okay so Joseph, how do you make money then? Okay let me enlighten you, if this market rallies in the next day or so, it will retrace to a certain Fibonacci level and the it will rally again and so the probability of this market given me a second rally after the first retracement is more than 90% so that's where I make my money.....if you are smart you will figure that out.
That's all he wrote!
That's all he wrote!
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