Trade management, a skill

Trade management is a skill and tricky to achieve, the first thing in the morning! The trade is from 8.15 am 16th February 2018.

The chart below shows a possible wedge; three pushes down marked by the red arrows. A strong bull-bar, the close of which is characterised by the green box, provided a reasonable probability of an entry-long with a target back up to the previous high.

We enter (the green box) long. The follow-through, however, is somewhat weak. Until we get the bear bar, the close of which is marked by the red circle; acceptable as a small loss exit position.

However, we hold. The trade is expected to go back to the low of the day. The risk is a breakout short.

At the price action long, shown by the green horizontal arrow, we scale-into the trade. Our target is a breakeven on the original bet and a small profit on the scaled-in take.

To scale-in improves probability but is not for the beginners.

A screenshot of the trade live.

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