First Discretionary Trade in Weeks

I made my first forex discretionary trade in weeks yesterday morning.  I followed my plan to the tee and came out on top with 92 pips of profit.  What did I do right?

Found my Setup 

As I stated a couple of weeks ago, I was going to be studying chart patterns on the Daily or 240 minute charts.   My setup is based on the daily chart below.  The USD/CHF had been trading within this bearish flag for weeks now.  The price had recently bounced off the top channel line and slowly started to descend.  Providing further confirmation was the 3/8 Murrey Math Line which from my limited knowledge is a difficult line to penetrate.  In addition there was a bit of divergence between MACD Oscillator and price.  

 
 
Stop Loss 

I placed my stop loss above the high of the previous 2 daily candles and above the 3/8 Murrey Math Line at 1.2456.

Limit 

With all of the indecision in the market, I decided to move to the 4 hour charts and exit at 2/8 Murrey Math line which would be a 92 pip limit.  

Risk/Reward 

Entry at 1.2421 with 35 pip stop loss.  Target of 92 pips.  2.6 Reward/Risk.

Psychology 

A common mistake of mine in the past was to close out my position when it showed a bit of profit.  This is due to fear that the market will move back against me.  In the past, I probably would have taken the trade off the table last night when I was up 50 pips but I knew that this was definately not the right thing to do.  The right thing was for me to ride out the trade and wait for the target to retain my very good risk/reward.  I did wait and at about noon today, my target was hit. 

Now the stupid thing for me to do would be to get overly excited about this successful trade.  I am by no means doing so.  I just want to make a point that when you plan a trade before you enter and stick to your plan, you can at a minimum feel good that emotions didn't get the best of you.  If you win the trade, it's even sweeter. 

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