I need advice-correct limit order and stop loss

Hi,
i need some help. I have just created my own trading system and i think that somehow works.
My big problem is when i try to set limit orders and stop loss.
More, with limit order. I usually put my limit order a bit lower than the first minor resistance/ support or in otherway aprox. 20 pips for limit 10 pips for stop in an five minute frame. But doesn’t work!!! So i have loses although the most times i am in correct trend. Could anyone advice me to improve my orders?

Thank you for your time.:confused:

First of all, I detect that perhaps you a bit new to trading or trading systems and maybe your expectations aren’t in line with reality. No matter how good your system is, it will lose some trades. All you can do is limit your losses.

You didn’t explain your system. Perhaps its not suited to the 5 minute TF. What I mean is that S/R detected on the 5 minute may not be signifigant. An S/R level on the 1H that is hit and holds 3 times is much more reliable than another on the 5M. What you think is S/R could be some insignifigant pause. I have seen prices stall for an hour and then resume the trend - traders were probably at lunch. Try picking S/R levels on a higher TF and then trading them on the 5M.

Do you trade at the same times every day? That can have a big impact on your success. You will begin see the flow of the market - opening moves, counter moves, pauses, news events, closing moves.

One thing that you are doing right is using Stop/Limit orders for your system. That is a very good habit compared to using market orders. I hope that you are trading in demo or with micro lots.

Are you using mt4 and entering 10 or 20 …:confused:…I’m thinking if you have the 5th decimal, 10 and 20 is actually 1 & 2 pips… not much room for anything to work. Maybe if you increase that to 60 & 80, which is 6-8 pips, it allows a few pips around the spread.

Thank you for your time and for usefull answer. Do you think that is better to read some books relative to forex trading? I only have read the baby pips lessons and i try to observe the charts. If you think that is better to buy a book could you recomend any?:slight_smile:

I haven’t read a Forex book that I can remember. Everything I learned was from training sessions and on the internet. Sign up for as many trading webinars as you can, even if they are not forex. But the most valuable lessons are from actual trading.