Whenever I review my trading profits at the end of the year, I always find the same thing. 80% of my profits come from 20% of my trades. I always go back and review the big winners. I do not review my big losers. That is because they do not exist. Long ago I wrote down all of my trading rules. The number one rule is this:
Never risk more than 2% of capital on any trade. EVER! Less than 1% is preferable. 1/2% is best.
This means I never have big losers to review. Lots of little losers. One of my biggest wins last year was going long the New Zealand dollar. I went long on November 11th. The original post is here.
First, the daily chart shows a H&S failure pattern.
This breakout corresponded to a H&S bottom on the weekly chart.
Daily pattern breakouts that correspond to weekly pattern breakouts are the best trades to make.
A winning trade becomes profitable right away. A winning trade trends right to its target and never looks back.