LONG NZD CHF (DAILY TIMEFRAME)

24 thg 2, 2023

Entry 0.5800
STOPLOSS 0.5700
TAKE PROFIT 0.6025

PRICE RANGE FROM NOVEMBER 65 - FEB 66
UPPER 0.6
LOWER 0.57

I take this trade based on price action

As a trader, I have identified a favorable trade setup through price action analysis, where an engulfing pattern has formed at a demand zone, and a trendline has been confirmed. Additionally, the price has been rejected at the low of the past three months, further supporting my bullish bias.

To manage my risk, I plan to invest only 0.5% of my risk per trade portfolio, which is valued at $100,000. Therefore, I will be risking only $500 for this particular trade. With a favorable risk-reward ratio of 2.3, I stand to gain $1,150 if the trade goes in my favor.

To avoid psychological bias and emotions affecting my trading decisions, I will implement a set-and-forget method, where I will not monitor the trade and simply let the stop-loss and take-profit levels manage the trade.

(IMAGINE)
Furthermore, my overall portfolio is valued at $700,000, and my risk-per-trade portfolio is $100,000. Therefore, I am risking only a small portion of my overall equity curve, and any potential losses will not significantly affect my long-term returns.

Overall, through the use of price action analysis and proper risk management, I have identified a favorable trade opportunity that aligns with my bullish bias and has the potential to generate positive returns for my trading portfolio.