7/15 Analysis: Minimize Losses When Possible
At the London open, there aren’t any immediate trading opportunities but I would note that the AUD (orange line) & GBP (red line) are on the strong side and the JPY (yellow line) and NZD (purple) are weak.
This is where having some market knowledge is important because for example I wouldn’t want to pair the AUD with the NZD because they are too closely coordinated.
So with that said, I would be looking at pairing the GBP with either the JPY or the NZD. As usual, we would place pending orders looking for a breakout since we don’t have current momentum in the market.
- GBP/NZD BUY
I’ve marked where the pending order would have been triggered (10 pips above the opening price).
In this case, price only goes up 10 pips before reversing and stopping us out. The important lesson here is our trailing stop would have moved up from -20 to -10 meaning you would have only lost half of what your total risk was at the beginning of the trade. This is how you manage your trading like a pro to minimize losses. Most amateur traders do not accept losses as a part of trading and you can’t truly be successful until you do.
When you watch the entire video analysis, I will show you another trade where we minimized losses during today’s London session:
You can see that our Currency Strength Indicator is an effective tool for picking out the highest probability, lowest risk trade set ups while avoiding market conditions that aren’t favorable. If you keep using this tool every day along with our daily Forex analysis, you will increase your win rate and be on your way to becoming a profitable trader long term.
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