CAD/JPY – Result +30 Pips

The trade was closed at 81.041

Here are some notes on the trade, based on how I viewed this market based on a longer term chart. These may benefit beginner traders more.

1) I do not frequently trade this pair. I have no insights on it. I was going through forex charts and drew a trendline. That’s how it started.

2) Since I did not have a trade plan (NOT RECOMMENDED) I decided to short the market with the smallest possible size. Confident I could work a profit out of it but knowing that I might have to take a loss.

3) I did not take the trade based on a candlestick pattern or indicator. I drew a Fibonacci Retracement after I was in the trade. However, I did notice a Head & Shoulders type formation on lower time frame chart.

4) I am not saying this is was a good or great trade. I decided to exit the trade manually however someone else can have a different plan for the trade. Or would have skipped it. Or maybe would have added another short position, etc.. Price may reach at least the 61.8 level without a substantial pullback, we don’t know. IMO, you should think about the effort put into each trade. Also, your capital could be tied up in a mediocre trade while there are better opportunities.

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