Forex Stop Run Trade Taken in U.S. session on 8-06-2012

Hello All,

Today the U.S. session had better movement than what is the typical norm on an August summer session. We took a Forex Stop Run trade that broke our  support zone at 1.0545, however it did not have much conviction, so I took a long at 1.0550. I decided to take a Forex Trend trade going with the over all trend over the last few trading sessions. Several of our day trading indicators were showing us we may get some selling, however from experience I decided to go against this possibility and play on the fact that it would be more lucrative for Dealers and Banks to run stops. We ended up hitting our target at 1.0584 for +34 pips.

How do you know when Banks and Dealers may run stops in Forex?

It is simple you don't. Sorry to burst your bubble, since you may have read some secret Forex strategies on the web where they claim to know exactly when the Banks may act. The bottom line if you manage your money properly and trade the charts everything else may fall into place.

How do we find a Forex Stop Run trade?

Well if you closely analyze key levels on your charts you may be able to gain an edge and determine where stops may or may not be placed.  Remember the keyword is 'May be able to'. Nothing will beat hard work, goal setting, and money management to place you ahead as a Forex Day Trader. This is the daily creed I extend in my Forex Trading Room daily. So with that said, I am posting my little review video and I am back to charting.

Forex Video: Here is the Stop Run Trade taken in our Forex Room on 8-06