Lesson Well Learnt!!

Good Morning Dynamic Traders,

Hope you all had a good weekend and are well rested for another week of trading!!

Over the last 2 weeks I have been following the CHF! I left you with a question on Thursday which was “What is it that I (we) have been waiting for?” The answer was a point of entry and to be more specific, an entry point for a shorting position!!

I hope my updates have been clear and I am now going to conclude my 2 weeks of the CHF, but more importantly I am going to share with you a lesson I learnt last week!!

Over the last 2 weeks I have been updating the progress on price and I have been banging on about price playing within the channel. This was an important part of my analysis, because the 2 trend lines have been controlling price to stay within that range. These trend lines have also proven themselves as price has tested the bottom trend line that forms the bottom channel 4 times now, and price has tested the top trend line that forms the top line of the channel 3 times. This is a clear indication of how strong these S/R lines are!













On Thursday we got our entry point (although this does depend on how aggressive you are) and I was triggered into a shorting trade. My position started very well, but I began to sweat a bit because price started to turn around got a little stronger. Due to the fact that I was travelling home and had to turn off my laptop I closed my position with a 10pip loss, only to discover upon arriving home and turning my laptop on that price had continued to drop! This was incredibly annoying because price had fallen all the way to the bottom trend line as my analysis said it would and due to the fact that I was in London I decided to stay out of market on Friday.

My frustration isn’t because I made a small loss! It comes from missing out on potential profits, especially when I was in the trade originally. However I can take comfort in the fact that my analysis was spot on and I can learn from the mistake I made and hopefully you can too!!

Keep an eye on this currency as it is still showing signs of offer profits. Remember always carry out your analysis!

Happy Trading

Richard Monnery