up-date on our crude oil trade, i just took half our profits off this trade…

read the post here, and remember to subscribe to our blog 🙂

we talked about placing your profit targets in our members-only training today, and this was a perfect example of our effective trade management strategies.

we can easily see 2 places to take profit on this long trade, so trade management was simple.

notice we didnt have any big round numbers, or choppy areas to trade through, just blue skies and plenty of profits to grab on this potentially 75-tick move!

So I entered this trade long as we discussed earlier, placed my stop at the lows as always, and my first 2 targets at 74.44 and 74.75.

I was initially a little startled by the way this trade quickly went into negative territory, but the indicators confirmed we needed to stay committed to the trade.

one thing i quickly noticed was the hidden divergence you see on the momentum indicator and the swing lows the market made after our entry above 74.05.

notice how the price does not make a lower low, while the momentum does, which tells us the buyers are mounting an attack!

once we got back in the green on this trade we moved quickly to 74.40, and then fell asleep just short of my first target @ 44.

finally we got our first target filled, and im currently waiting for my second target @ 75 to be filled.

my stop is at entry, and my final target is two ticks below the high of day at 96.

at this point my trade is protected, we’ve taken 70 ticks on 2 contracts off this trade +35 each, im expecting our second target to get filled…

another great day trade on crude oil futures, this one was an easy one, lets keep these nice winners coming!

ill review this in the trade room tomorrow, see you there!