Last night recited the notorious tale of the market flirting with the stop loss - just enough to get stopped-out before turning and falling in our favour. Trades like these really test a trader’s discipline as it becomes incredibly tempting to move that stop loss price level a bit higher as the market gets closer. It’s often in those situations where traders tend to turn small losses, which should be part of the plan, into huge liabilities that decimate their trading account. Sticking to the trading plan and trusting your back testing figures are key during these sessions. Join us again at 5pm Sydney/Melbourne time as we enter our penultimate trade in the EUR/USD 5 minutes a day trading campaign.
Benjamin Charbonneau, CFA