Objective Trading ForCareer Successhttp://www.netpicks.com

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In trading, I am a huge fanof keeping things objective.

Far too many of us can be swayed by fear/greed that can cause us to either take profits too

quickly or worse, stay in a trade way too long.

Both of those can end your career.

Not everything is objective though.

Here is a chart of a swing trade I took in the AUDUSD currency pair.

AUDUSD

I started my trading career years ago day trading Forex and while I did alright, nothing beats

swing trading.

I am prepared to hold trades for weeks although most trades end in days with some actually

lasting a few hours.

That really depends on the time frame I took and managed the trade on.

Using clusters of Fibonacci retracements and projections, a zone at .9546 was determined in

advance of the turn on the previous chart. The subjectivity came from which highs to pull

the retracements from.

The highs had to be noteworthyso still had some objectivity!

I even tossed in some basic EWaves (right or wrong…gives me context) and noted that the

possible correction was overlapping the waves which makes it a probability it was a correction.

That is where subjectivity really ends.

The entry into thetrade was objective.

This chart on the next slide shows momentum moving in the direction I wanted to trade.

This chart shows the level I hadmy sell stop set up under (9504).

(Briefly seen in the video before I zoomed in).

This was a swing level just prior to price hitting the price zone of interest. A little more

conservative entry would have been a break of the wave D low.

Here comes the part where most traders make a mess of a good trade.

Trade Management

I traded this in two parts. It was objective so as not to be reactive to my emotions nor the P/L of the

trade. The first 50% of my position was to be scaled out at the 1.272 Fib extension level of the

move into the price zone of interest.To make it more objective, a buy limit order was set at this price point to automatically scale out half of the position. At 9392, my order was executed for

112 pips

The next step was to take all risk out of the trade. After the scale out, the protective stop

was set to breakeven on the final position.How to manage the next portion?

Objectively

Price moves in waves that we can take advantage of and this chart will give a visual on

what I was looking at.

1. Price retraces2. Indicator crosses up3. Indicator crosses down4. Price breaks the preceding low5. Stop goes above swing point

Trade Management Rules

This trade finally stopped out at an objective adjustment of .9339 for 165 pips.

Total for full position is 138 pips.

Can you see how objectivity keepsyou honest in the trade?

There were times when price gave a bonus on the trade by falling quickly but according to my rules, I HAD to wait for a retrace and low break

in order to adjust my trade.

Can you give up a large chunk of profits by having strict stop parameters in the case of

thrusting price moves?

Yes.

Will you, more often than not, do much better in the long term by sticking to a constant plan?

My experience over the years of trading says “yes.”

For all the times you take profits on big sharp moves that come out of nowhere, you will

give up much more when the market trades more “average”.

Keeping this entire plan objective, allowed me to reap some nice profits with little stress and kept

emotions out of the equation.

Can you do the same in your trading?

Visit our highly rated trader education site!

www.premiertraderuniversity.com