How To Trade - Example Trade, blow by blow

 

Trade washes out as it hits Stop loss. :<
A loss of 20 points. This is how trading is , not all trades make it and one needs more winners than losers to make up for the losses. All I can do now is either wait for a new trade and valuate why the trade didn't work and what to fix for the future.

In this case entering reading the overall markets weakness and last two day sell off should have looked to trade the 2min chart for a long (up) position.As shown below

The day chart has a setup entry that is triggered if tomorrow moves up past the high of today at 4518.60 then entry will be made with the stop below the low of today.

How To Trade - Example Trade, blow by blow

THE ENTRY

My entry at 4510 was triggered using my entry rules for a intra day Swing trade
1.My rules is that if there is a white candle that closes above the double blue lines then that candle becomes my Setup Candle.
2. If the next or preceding candles break the high of that Setup candle I take the trade. It must move at least 2 points above the Setup bar.
3.A Stop loss is placed below the lowest low of the base or Swing. In this case its 20 points away. Position size I am risking 20 points. My 1st target is 4536 or 24points and second Target is 4559 or 46 points.
So I am risking on this Swing Trade 20 dollars to make 24 dollars or better.

I  will update during the day with more live snap shots of the trade.

Now I am trading an CFD called AU200 CASH.IND provided by MF Global Australia, this CFD follows the XJO more closely than  the SPI.