AUDCAD trade Practical Example
This trade is from 14th April 2020. I ran this AUDCAD trade parallel to another forex pair trade, GBPUSD. I wrote an article on that post, and if you did not get a chance to read about it, I highly recommend reading it here
My supposed entry for AUDCAD currency pair was around 19 GMT+8, which I missed, however around 20 minutes later, I found a good entry point to enter this forex pair. I set my stop loss and take profit targets based on my audcad analysis I performed before entering this trade.
Trade was performing very well. I decided to let the trade run, and I left for my dinner.
By the time I got back, AUDCAD trade was in an in-depth pullback scenario. Since I had done my homework regarding audcad forecast and predictions before entering AUDCAD forex pair trade, I was not much worried. The pair started to get close to my stop loss level.
Now, this is the time for me to start reading this pullback force more carefully. I was not panicking as I believed my audcad analysis I performed before entering this AUDCAD trade. However, I was concerned as price was getting closer to my stop loss, and my worst scenario was what if it goes down slightly further, stop me out and then start performing in the right direction.
That is why I was monitoring it closely, I removed my stop loss from my trading platform, and I started watching it more closely. I knew my visual stop loss on the aud cad chart, so I was prepared that if this trade goes below that price point, I will close the trade and move on.
Usually, I don’t take full losses and try to close my AUDCAD trades even way before it gets closer to my stop loss point. However, In this case, I was more confident that bullish momentum will get back to play anytime soon.
Soon after the same happened, the bullish trend came into play and started performing. I found another excellent entry around 22:40 GMT+8 and ride all the way to hit my first trade target. My second entry is shown in the image below.
Results:
I was running both AUDCAD forex pair entries parallel until it hits my targeted price point for my first trade. It was getting late for me, so I decided to close both forex entries and call the day off. Again it was a decent trade giving me nice 25 PIPS for the first trade and another 25 PIPS for second trade as well—a total of 50 PIPS from the pair.
Conclusion:
Always believe your study performed before entering a trade. There is no need to panic if pair starts a pullback phase, however closely monitor your trades during pullbacks. You must never be rigid on your stop-loss points nor too generous about it. If you choose a stop-loss price point after your analysis, then there must be a reason for that; however, you need to be a bit flexible about it and manually monitor it, and once you are sure that you were right about your stop loss point, right away exit the trade. As you can see in this aud to cad graph
Tip: Don’t hang on to a trade for long, hoping for it to come back. A lost trade never comes back, and if it does after an extended period, it takes all the energy, passion, and self-confidence from you.