The weekly trade was long 1.4357 to target 1.4500’s. A good valid weekly trade as usual. However, EUR/CAD traded to lows at 1.4262 and off entry by 90 pips.
I cannot state this point enough, an entry miss is a bonus to profits. Normal traded markets never experiences an entry nor target miss. But now and then in our weekly trades, an entry miss is seen.
But an entry miss only affects 1 or maybe 2 currency pairs and extremely rare to see entry misses on multiple currency pairs. For example, USD/CAD might experience an entry miss. This means CAD/JPY will miss entry as well. Possibly, all GBP or all EUR might witness an entry miss
The only manner to see en entry miss is a price trades from oversold to more oversold or an overbought price rises to more overbought. This week and 2 weeks ago, all prices are trading lower on oversold and higher on overbought. Signifies an ailing market overall as prices lack symmetry from currency pair to currency pair.
GBP/NZD is a good example. this week as entry 2.0304 was surpassed 3 times. Rare to see 2 times for the same trade entry. Overbought 2.0304 went to more overbought 3 times.
Never a problem as strategy is add 1 lot to a missed entry and never think twice as this decision should be automatic. The target is never in question but in GBP/NZD;s case, entry was the problem.
Example to missed entry and break even trade.
Add 1 lot at lows 1.4262 and so far traded highs was 1.4338. Add 1 lot result was +76 pips so far. EUR/CAD will eventually trade to original entry at 1.4357. Good choice to exit the first lot at break even and now we run at least a 76 pip profit on the second lot.
The second choice to the trade is hold both lots to the 1.4500’s target. But that is an individual decision to holding periods. Most traders want the weekly trades then to exit by Friday so then a new trade is issued every Saturday.
The lesson here is not only how to trade to break even on a missed entry and how to profit from a second lot but most importantly, currency and all financial instrument trading never experiences losses. Hard concept to grasp for the majority but if the price context is fully understood then losses are impossible. Many traders that trade with me for many moons fully achieved understanding to this concept and all know exactly what to do on missed entry, break even, profit trades and never a loss.
And note to the trade, 3 numbers for entry and target. Nothing more is required. Not a stop, chart, graph, Conovirus or the latest market talk or economics. A market price doesn’t care about such things as it only knows entry and target and the price always complies.