Making Decisions in My Forex Side Hustle
It’s early, and my overnight trade on the EUR/USD is slowly creeping lower, which is what I wanted. I used the Wave’s middle line as my protective stop, so I quickly check to see if that price needs adjusting. It’s only moved by a few pips, so I’ll leave my stop where it is for now.
Since I wasn't glued to the screen yesterday, I'm dedicating a little extra time this morning to get caught up. A major report, the Initial Claims number, is due out at 8:30 A.M. EST, and that usually means a spike in volatility. I even set an alarm—something I rarely do—just to make sure I’m prepped and have a feel for the price action well before the news hits. This is a crucial part of managing my ; I need to be ready for market-moving events. My confidence comes from trusting my charts to guide me, and when you truly believe that, you know you're a chartist.
It’s 4:00 A.M., so after grabbing some tea, I start my scans.
Early Morning Analysis and Decisions
I work my way through my list of currency pairs alphabetically. The AUD/USD doesn’t present any new opportunities on my preferred time frames, but the short position I took on the daily chart back on the 3rd is still active. I plan to continue trailing my stop down using previous profit targets. As prices break key Fibonacci levels like the 1.272 and the 1.886, these old support zones flip into new resistance.
This is where personal risk tolerance becomes critical. I could place my stop above either the 1.618 or the 1.886 level. Using the 1.618 gives the trade more room to breathe, while the 1.886 protects profits more aggressively. With the price also breaking below the 0.7400 psychological level, that’s another option for a stop. There isn’t a single “right” answer—it’s about making a choice that fits your strategy. This kind of decision-making is constant when you're .
Next, I spot a confirmed breakout on the 30-minute USD/CAD chart that I’m going to pass on. The chart shows the price breaking a downtrend line and the Wave’s middle line, confirmed by a MACD histogram that’s been positive for over six hours. So, why am I not taking this trade?
The breakout is happening right at 1.1500, a major psychological resistance level. The candle’s high was 1.1501, not the three to five pips above the level I’d need to see for a valid entry. On top of that, there's horizontal resistance waiting just a few pips higher at 1.1507. Entering here would mean fighting through two significant resistance levels right away. It makes more sense to wait for a clear break of both. Giving up a few pips now for a much stronger confirmation of a breakout is a smart trade-off. This discipline is essential for anyone trying to turn into a reliable source of income.
Taking Action and Managing Trades
While I was analyzing the Canadian dollar, the USD/CHF ("Swissy") triggered an entry. The breakout was confirmed and happened far enough below the 1.3000 psychological barrier that the trade has room to run. With resistance nearby at 1.2991, I set my initial profit target at 1.2995.
It’s only 4:30 A.M., and I’m already in a trade. The Swissy quickly moved up and hit my 1.2995 target. I immediately look to trail my stop to protect the gains. At the same time, I noticed the EUR/USD broke down on its 30-minute chart. The entry happened so fast that I missed it while managing my Swissy trade, but I’m not worried. A short on the EUR/USD and a long on the USD/CHF are essentially the same bet on U.S. dollar strength. Plus, I’m already short on the daily euro chart from the previous day. This is how you manage a —by understanding correlations and not chasing every single move.
As I continued my scans, I saw the GBP/USD had dropped hard, but the setup was long gone. I moved on.
Navigating Conflicting Signals
The USD/JPY presented an interesting problem: the 60-minute chart showed a confirmed breakdown, while the 180-minute chart showed a breakout to the upside. When faced with conflicting signals like this, my rule is simple: always favor the longer-term setup.
The 180-minute chart was the superior choice for several reasons. Its triangle pattern was more balanced, the MACD reading was cleaner, and its Wave was flatter—all signs of a higher-quality setup. The trade had already triggered a confirmed breakout around midnight, but the price hadn’t moved much, offering a perfect second chance to get in. I set up the trade using pivot points and psychological levels to define my stop-loss. This process of weighing evidence is a core skill for any in the markets.
Just as I was getting settled, the USD/CHF reversed and hit my trailing stop, closing me out for a quick profit. The 1.3000 level proved to be a powerful resistance point. Looking back at the USD/CAD chart, it was clear my decision to wait was correct; the 1.1507 resistance held firm.
Staying Patient and Sticking to the Plan
By 7:00 A.M., the Swissy was trading sideways again. The setup was still valid, but I couldn’t act because of that 1.3000 resistance. I placed a conditional if/then order to go long only if the price broke above 1.3005, with a profit target set just below the next Fibonacci level. I was ready for the volatility from the Initial Claims report.
The 8:30 A.M. report came and went with little impact, and my buy order was never triggered. This brings up a question I get asked a lot: How long should you stay in a trade that’s going nowhere? My answer is always the same: you stay in until your stop-loss or profit target is hit. I never exit a trade just because time has passed. The problem isn’t the trade; it’s a trader’s failure to allocate enough margin to pursue other opportunities. That’s a lesson in risk management for any .
My patience paid off. At 9:30 A.M., the resistance on the Swissy finally broke, triggering my 1.3005 entry and my limit order to sell at the first target of 1.3018. I was in, and I immediately placed my protective stop-loss. The price continued higher, hitting my second profit target at 1.3028. I moved my trailing stop up to my previous target, but the momentum soon faded. The price fell back and hit my stop at 1.3018, closing the rest of my position.
Later in the afternoon, my USD/JPY trade also hit its trailing stop. By the evening, a new opportunity emerged on the GBP/USD. The pair was breaking through resistance, and with Asian markets active, I felt confident entering a long position. Before heading to bed, I set the trade on autopilot with a bracket order to manage my entry, stop-loss, and profit targets while I was away. It’s all part of the grind of making work for you around the clock.
