I had already taken a silver trade on the 15 May on the 1 hour chart. See previous post for more details. The following chart below shows a breakout trade on the 4 hour chart, my winning trades for the day.
I had an order in to fill at 2981.5 which was a price level directly above an area that had been acting as resistance. The trade entered and immediately ripped to the upside. Originally I had a stop loss when I entered this trade at 2931.
After the price ripped I did take 30% of my original trade position off the table by taking some profits at 3139. See how the profit taking looked on the charts.
What we notice here is that at tranche 2 profits it was actually more of being stopped out. What I had done was get nervous and I had moved my stop loss way too high for the volatility that was being demonstrated over last few candles.
The overall total profit on this trade was £272 which was actually exactly 3 times the initial risk I had taken on this trade of £92. A good result combined with the two day prior trade on silver.
The key lesson learned here was to not get jumpy about losing some profits and properly leave that stop loss at the correct level, regardless of how uncomfortable it would make me fee. Trading is about being comfortable being uncomfortable.
Trade Clearly!
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