{"id":117125,"date":"2017-12-03T09:38:52","date_gmt":"2017-12-03T14:38:52","guid":{"rendered":"http:\/\/countingpips.com\/?p=117125"},"modified":"2018-06-01T15:48:30","modified_gmt":"2018-06-01T15:48:30","slug":"active-trade-management-examples-in-the-forex-cfd-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/12\/active-trade-management-examples-in-the-forex-cfd-markets\/","title":{"rendered":"Active Trade Management Examples in the Forex & CFD Markets"},"content":{"rendered":"
December 3, 2017<\/div>
\r\n<\/div><\/div>

By Admiral Markets<\/b><\/p>\n

<\/a><\/p>\n

Dear traders,<\/p>\n

Balancing your fear and managing your emotions during a trade setup is not a simple process.<\/p>\n

Last week’s article \u2013
\nThe Benefits of Active Trade Management<\/em><\/a> \u2013 showed my four-step plan for handling trade management in detail. However, nothing beats seeing practical examples of applying theory.<\/p>\n

That is why today I will be adding live examples of trade management from November 2017 and explaining my thought process during those setups.<\/p>\n

\"Live<\/a><\/p>\n

EUR\/AUD Setup: Example of a Fine Balance<\/h2>\n

The
\nEUR\/AUD<\/a> 1-hour chart was showing strong bullish price action (blue arrows) and an equally strong oscillator push (purple box). The price started to make a bearish retracement, and I added a resistance trend line (dotted red line) to connect the tops. My long trade setup (green line) was triggered once broke above that resistance with a clear bullish candle (green arrow).<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

Step 1: Loose Management<\/h3>\n

My first focus is to be patient with the setup (purple 1). Trades can show indecisiveness at the start and do not have to immediately move into my desired direction. Generally speaking, I am more patient with trending trades than I am with reversal setups, because the price often tends to move with the trend, especially, if divergence is not visible.<\/p>\n

<\/a><\/em>
\n<\/em>Source: EUR\/AUD 1-Hour Chart, from 13 November to 17 November 2017<\/em><\/p>\n

Step 2: Tight Management<\/h3>\n

Eventually, there is a time where I become less patient with the setup (purple 2). If the trade has not yet hit my stop-loss, the price is either going sideways or moving into my direction. In both cases, I want to reduce the risk of this setup and move my stop-loss to a support (longs) or resistance (shorts) point.<\/p>\n

Step 3: Loose Management<\/h3>\n

Now that the trail stop-loss has reduced the risk or even locked in the profit, I prefer to become patient again and give the trade some setup space for it to reach my original and intended profit target (purple 3).<\/p>\n

Step 4: Tight Management<\/h3>\n

With the last step, I will again become less patient with the setup and will either try to lock in profit by using a trail or close the trade with a profit via an immediate market exit. Step 4 is triggered in three cases, when the price is:<\/p>\n