By Michael Storm aka Robin hood– Follow On Twitter
Greeting fellow traders, today I would like to discuss a really great trade that I (unfortunately) missed. I must confess it sort of broke my heart, but we must take comfort in the fact we cannot always capture every trade, but that MORE opportunities Will indeed present themselves in time. This may not be the greatest article, but I feel this is important to look at, as trades like this don’t happen every day. They are rare. Take a look at the following chart of the GBP/JPY. This is the daily and I was waiting for a break of 145.80 which was critical support:
Now take look at this chart of the 1 hour:
You can see on the DAILY chart where I circled the consolidation area. This area is the target zone, where I would have exited 2/3rds of the position (should I have taken this trade. Sniff, sniff). Now in this 1 hour chart you can see a nice tight narrow range bar area developing and a false 1 hour buy setup bar. IF I was around to trade this, this is where I would have closed a major portion of this trade and reduced stops, but alas, I was too busy eating Turkey ( a man has got to eat and spend time with his family so thank God for some holidays and time off). This represents approximately 250 pips in profit! I circled the climactic “Puke out” bar at its bottom. I very much doubt I would have held it that far. Probably would have covered the rest around the 140.10 area, but you can see this movement was VERY powerful. Talk about the “pause that refreshes”. This trade moved a total of 650 pips from the entry zone! Now, THAT is a GREAT swing trade. The BIG one that got away from me. I posted this entry idea to folks on twitter on Wednesday eve. IF any of those people took it, they were sitting pretty. Granted, this type of swing trade does not happen often, but we should ALWAYS be looking for trades like this. You do watch the dailies don’t you? You do know where the critical areas are don’t you? This is trading and is BIG money flows. We need to all take this VERY seriously. Lets be FOCUSED, lets be PATIENT and above all lets be DISCIPLINED. Take a look at today’s chart showing targets were well exceeded:
Thanks for reading and till next time, Happy trading to all. Michael S.
PS…. Still reading? On a personal note: My brother in law (who does NOT know how to fish) came over one day, about a year ago, to “try his luck” in our river. It was flowing VERY fast, because It had rained for 3 days, torrentially. Upon his FIRST cast (wow, talk about beginners luck!)… He caught a MONSTER! He was so excited! I was so excited! He was fighting it so hard to pull it in and we were whooping and hollering. I go so excited, when it surfaced I saw it was ALMOST 4 feet long. I jumped in wrecking my new $100 shoes I had just bought and I saw it was a Great sized Northern Atlantic Pike. This was a trophy fish. I tried to put a net over him, but it only covered his head and half of his body, so, not knowing what to do, I took the net off and he jumped up in the air, twisted his body and snapped the line with his razor sharp teeth and he was GONE.
We both cried. The next day, as I was sitting in the dentist office awaiting root canal surgery (great joy) reading “Field and Stream” magazine, I saw that a fellow had won a quarter of a million dollars in a fishing tournament in Alaska catching the very same fish. It took him all day! So, I can relate to the Big one that Got away. Lets all be READY for the next “monster” move. Agreed? 🙂
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