NEW TRADE, SAME TOOLS USD/CAD 2/18/15

The instrument may change, the tools are the same.  Had a chat trader ask an opinion on the USD-CAD.  It is nice to have more eyes looking,  A quick glance and it was clear that a short was the bias.

The issue was:  How long do we wait for the trade to develop?  Traders can have an opinion and jump into a trade only to have price bounce around taking them out in fear.  A trader must have a bias as to direction, an entry point and an exit.  Entry and exit strategies vary and is a learned skill.  Practice, practice, then practice more trades before you enter with real money.  It does not give you the fear factor, but will help develop your entry/exit skills.

After you have practiced your strategies, documented results, you will be ready for a new experience: real money trading.  Start small.  Practice small.  You must feel the fear and greed that is part of every trade.  Keep your account small until you can replicate trades with success and after you have found a way to minimize the fear, the greed, and the risk associated with every trade.

You are likely to fail if you do not have an entry/exit strategy and an ability to manage your account.

USD-CAD

[20:11] <@nick deleted> usdcad  cm a shrt?
[20:17] <CM> sh with a stop 1.24550 area  stronger sh with a break of the 50CB support below  (chart deleted)
[20:18] <CM> 5m chart
[20:18] <@nick deleted> tks
[20:20] <CM> will look at 1.24510 for entry

The charts were short time frames with a short bias.  Longer time frames are preferred for stock or option holds; the tools are the same.

[20:39] <CM> albeit it is a short term chart  the 50cb and the 50cb 45 was hold price suggesting a short  (chart deleted)

Price action was flat with a sell bias.  Lower 50CB's were the targets, with break outs short strength increasing with each 50CB.

STRATEGIES:

1.   Aggressive shorts at the current price, with adds at the lower 50CB's.
2.   Aggressive shorts at the current price with exits at the lower supports. (50CB's)
3.   Wait, and take Conservative shorts at the break outs


[20:40] <CM> T1 24480
[20:41] <CM> partial exit
[20:41] <CM> stop to 24500  a win-win trade

With trading, you continue to evaluate price action for additional trades  if  your strategy is still valid.  Shorts continued as price fell to the 1.237 area.