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Old 05-14-2008, 01:32 AM
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tymen1 tymen1 is online now
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Join Date: Mar 2007
Location: Perth, Western Australia
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And now, to show what I was raving about :
how we put a permanent end to these lost trades!!


Its so easy!!

When we enter short at a high point we let the price go down then .........

............we shift the stop loss!

............to a point which is the distance of the spread below our entry point.


Huh ????


Let me take an example.

Say we are trading pair A/B with a spread of 3 pips.
Now we entered at, say, a price of 50.
Our stop loss is sitting at, say 75.

Lets say the price action is now hovering somewhere below 50.
We then move the stop loss to 47.

If the price should backfire on us, and retrace completely, then it will hit our new stop loss and we will get out of the trade with nothing.............
............no profit, yes..............but also no loss !!



This whole idea is nothing new. But in our search for achieving and maintaining a correct risk/reward ratio this will become important.

In order to get a high short entry, the next post shows a revised trading plan attempting to cover all short trade types. In these the shift of the stop loss is shown.
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