When entering a trade, one must have a system that can provide him the following things:
a) Is there a signal to enter a trade?
b) What is my risk / reward ratio?
c) Can I make a good prediction for my profit targets?
Since currency trading is a highly leverage transaction, an average trader may not have large risk capital to withstand the volatility of the price movement.
Therefore, is there a tool to help him to manage his trade, and to know in advance when to enter and exit?
Let’s see the chart below.
Know entry and exit level before trading commence
The above shows that there is a possible entry to sell EUR/JPY with multiple profit target level already forecasted.
After 1 day, here is what happened.
First Target within 1 day or 24 hrs
So, the trader would have gotten 270pips after leaving the trade to run for 1 day. It would be translated to about USD 2700 in a day, if he trade on 1 standard lot, or about USD 270 on a mini lot.
What if he continues to hold on his trade?
Second Target within 3 days or 72 hours
It goes to show that the trade was a right one and after 3 days, a profit of 340 pips.
After falling to 340 pips in 3 days, there will be a tendency to say “it getting cheaper to buy it up”; “bargain hunting”;”fair value”. Perhaps even the technical indicators would have signal for a buy, instead of sell.
Will it move to the next target as forecasted initially?
Third Target within 4 days or 96 hours
Imagine having USD 4500 for 4 days of ‘work’, that you need not glue on the screen, seeing an setup and then make a ‘set and forget’ trading. Will that earnings give you a better life?
What is this tool that helps to predict the profit targets level with precision? It is called Fibonacci Technique.
Will you want to understand how to use it for your trading?
Come to the coming course preview on the Tflow Forex Trading System to know about it.
