At the end traders, it all comes to take calculated risks.
But what exactly does that mean?
Its simple, to take trades when likelihood of the market of moving in one direction is higher than moving over the other direction.
That’s what we call probability.
And there is also another factor…
The risk reward ratio… Which is about the only factor that you can control on your trade. You could have the best and clearest signal of them all, and still the market could move against you.
But you can always (almost always anyway) control how much you are you going to risk and how much you are willing to make on each trade.
That’s the reason why I think the USDCAD is right now, the best currency pair to trade out there.
Let me show you what I mean…
This is the USDCAD weekly chart:
The USDCAD just broke through an important resistance level… And the next long term level is more than 800 from where it is currently trading.
If you decide to take a trade, it might take a while before it gets there… But its definitely worth it!
I already took a trade here… decided to take this trade based on the breakout of the hourly chart:
What do you think?
What do you think about the potential of this trade?
Do you agree with me that its one go the best ones to trade right now?
What other currency pairs are you trading?
Please comment below