One of the main reasons for making a profit in trading is too get out of loosing positions quickly. Most traders hang on to long to loss trades and cut profits short.

Below is a trade I took on the GBPUSD, my thinking was as follows:

The GBPUSD has been in a 5 year range since Jan 2009, so I must assume that this range will continue until it breaks to one side or the other.

This is what it looked like:

http://screencast.com/t/AKQSwSP517VN

Now, in order for me to go short I have to have a down weekly candle, as it happens there were three weekly down candles

http://screencast.com/t/UUc2FrZbuAEs

Let me now go to the daily chart, this is what I saw

http://screencast.com/t/lFzQqJvb

So I was at the possible top of a weekly range, the daily trend was down and I sold a pull back up to a high, remember you should sell strength in a back ground of weakness and buy weakness in a background of strength.

I have no idea if the trade will work or not, but it was well planed and executed and that is all you can do as a trader.
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