Hello everyone,
Today I traded a range breakout on NZDCAD in the direction of the hourly trend. It was a very well-defined range with an clean breakout, so all in all an easy trade, right? wrong Hector, wrong!
Today’s trade reminded that the Forex markets are not perfect and how levels of support/resistance sometimes are not respected right to the pip. A trade that should have been rather straight forward turned into a messy double-trade, the first one being stopped out for -21 pips and the second one hit its target for +36 pips.
But instead of me trying to describe the situation, perhaps it’d be better if I simply let you watch the video and judge by yourselves.
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30 November, 2:55 am
Hector, Looks like someone with a big sell order was also waiting for the breakout to occur. Your 27 pip stop seems a litte tight. Well, you know best. Congratulations! and thanks for another great video.
30 November, 4:09 am
Hi Hector!!!
yes that looked like a tough day at the office. Nice work on the re entry.
I have one question Hector. I notice you use MT4 charts and recommend EFX as your broker of choice.
My question is how do you deal with the difference of feed from the two?
What I mean is let’s say for example you are looking at your MT4 charts and have a stop or take profit target worked out on them but EFX’s feed is a few pips off, do you honor your MT4 charts when it hits that price and close the positon or wait for EFX to hit that price before closing the position?
Also I understand that if you are monitoring your trades in real time you can make that decision on how you feel the market is moving but what happens when you go to bed and set and forget?(especially around round numbers and 00)
thanks in advance for your reply
james
30 November, 12:56 pm
Norm - Yes my stoploss policy is always rather tight. From a general point of view I prefer to exit out at a small loss if the trade shows weakness than eating up larger unnecessary drawdowns. At the end of the day, we can always rejoin the trade later on.
James - In my opinion, quotes difference between two brokers is only an issue if you’re an scalper (which I am not). If you trade off the hourly/4H/Daily charts like myself, two or three pips of difference hardly makes any difference. Regarding your second question, that’s what stoploss and target orders are for. I do like to monitor my trades live but if I ought to step out of the trading desk I check that my exit orders are in place and that’s about it. We cannot become screen slaves, can we? :)
-HECTOR-
30 November, 3:57 pm
Hi Hector
Thanks for your explanation and yes I agree with you on not becoming a screen slave.
I hope your tooth doesn’t effect you having a great weekend
james