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Not Much Matching the Strategy This Morning – TheStreet

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This morning I am seeing very little that matches the price structures strategy. That’s ok. When swing trading the strategy there are new trades most days, but not all. 

For many traders there is a compulsion to trade every day, even if their strategy isn’t providing valid trade setups. Giving in to that compulsion is a mistake. 

A strategy is what provides a trader with their edge, their profit potential. Taking random trades that don’t’ align with the strategy means that edge could be lost.

Avoid trading just to trade. It will likely waste capital in the form of losses (over many trades; you may get lucky a few times, but luck runs out when not using a solid strategy) and it will certainly waste mental capital. 

Mental capital is the ability to stay calm and see the market clearly. Taking random untested trades can bring about negative emotions and reduce your clarity and conviction on the valid high-quality strategy trades that do come along!

The EURSDG is close to a valid setup. It is near a resistance zone, but it came into the zone choppily. Therefore, I would prefer to see bearish price action before getting involved. That bearish price action would indicate that the range is continuing. 

Recent Trades

GBPUSD and GBPJPY both closed. Despite being well onside initially, their stop losses were hit.

Whether to use a trailing stop loss or not was discussed in Lessons from Published Trades in May. A trailing stop loss is always an option, but for these trades we are going to keep it as simple as possible and let the trade hit the original stop loss or target. 

The EURUSD short trade remains open despite a massive pullback. 

By Cory Mitchell, CMT @corymitc

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.

Assume I have positions, all the time, in many pairs. Or, that I will be taking multiple positions as they develop.

Trades are based on strategies and are not meant to be predictions. The number of trades won varies between 30% and 60% based on the strategy. My objective is to make money based on solid reward:risk ratios, not try to predict every move of the market.

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