How many pip should be practically targeted on a trade?

[PipMeHappy]

I’m kind of shocked that no one has brought this up in detail yet, but “moreoption” did mention it. Support and Resistance levels are key in determining when and where to enter a trade, how much stop you need and how much profit you should be attempting. The first thing I would always do is to mark solid S/R levels, then if I want to take a trade, I would consider how much room it has to [I]run.[/I] In other words, how far is it from the next S/R level? I determine how large my stop should be not based on pips but on a logical point where if it were to move against me “this far” then I would consider my trade invalidated. However much I want to risk in dollars, I would calculate exactly to that stop loss size…and then I shoot for three times my risk in return. I will try to find an example to illustrate with a chart…

Thank you, MissLexy…

Indeed, all this should always be at the back of any trader’s mind, for which I would like to take us back

to where it all started: BabyPips school!

Forex Support and Resistance

[MissLexy]

Thank you for linking to the BabyPips school Support and Resistance material, I meant to suggest that the OP head there

[imbest]

My target is to make up to 20 pips in a single trade this target is not fix . I can close positions on less pips because command is in my hand I have to see market , before turn trend I get my sure pips profit.

[forexcrisp]

I target for last high/low depending on the strength of that turning point. Also in a trending market I can afford to target higher than my original take profit.

[maxiipriestt]

I target for last high/low depending on the strength of that turning point. Also in a trending market I can afford to target higher than my original take profit.

forexcrisp, that’s right. you got a point there by your targeted profit looking in from the last high/low. hence, i reckon that trade profit and loss should be set based but not limited to one’s observed swing highs or swing lows or support and resistance points. thank you all for the insight…

[ideasonscribe]

Beautiful post, MissLexy. I’ve been trying to learn Price Action for some time now and what you explained about S/R really resonates. I’ve been a bit discouraged lately because I am also struggling to understand how money management works in the Forex world. It might be hard to believe, but I’ve been studying Forex off-and-on for nearly 5 years. I was introduced to Forex 5 years ago and went through the school of pipsology. That’s when I started demo trading.
I did alright and turned my $250 demo account into around $417k in about 3 1/2 years. That was mostly because I was trading with 1:500 leverage, relative lots (increasing based on my capital). I took a lot of risks and just played around a lot.

ANYways, I later started another demo account (because I can’t damn well start a real trading account making minimum wage, paying for myself, my wife and my son to live). Started with about $1,000 capital.
This time, I am trying to put myself into the mindset that this $1,000 is real money. It’s not hard for me to do. I’ve psyched myself pretty well already.
With this account, I am only trading Price Action and I will be following my trading plan.

So far, my trading plan is to trade based on key Support and Resistance levels and find out which direction the overall trend is going (Since I trade 4 hour charts mainly, I will check the Daily chart to determine trend and S/R levels). Then I look for an indecision candle and the next candle as a clear reversal of price (towards the trend). This is about where I stop because I don’t quite know where to get into the trade, where to place my stop-loss and where to place my take-profit target.
After all these years, I still seem to not understand this part very well.
I’ve always just clicked and dragged the stop-loss line to just about above (or below, depending on which direction I’m trading) the Support/Resistance and then I click and drag the TP line up to about a 2:1 ratio. This worked for my reckless demo account I had, but I’m not trading reckless right now. I am trying to learn money management. That’s the whole point.

Anyways, it looks like you (MissLexy) have a good understanding of money management, so I’m curious to see some of your other writings on this if you have some.

Also, do you happen to have another account? Or is there just another Lexy somewhere on these forums?

[PipMeHappy]

Beautiful post, MissLexy. I’ve been trying to learn Price Action for some time now and what you explained about S/R really resonates. I’ve been a bit discouraged lately because I am also struggling to understand how money management works in the Forex world. It might be hard to believe, but I’ve been studying Forex off-and-on for nearly 5 years. I was introduced to Forex 5 years ago and went through the school of pipsology. That’s when I started demo trading.
I did alright and turned my $250 demo account into around $417k in about 3 1/2 years. That was mostly because I was trading with 1:500 leverage, relative lots (increasing based on my capital). I took a lot of risks and just played around a lot.

ANYways, I later started another demo account (because I can’t damn well start a real trading account making minimum wage, paying for myself, my wife and my son to live). Started with about $1,000 capital.
This time, I am trying to put myself into the mindset that this $1,000 is real money. It’s not hard for me to do. I’ve psyched myself pretty well already.
With this account, I am only trading Price Action and I will be following my trading plan.

So far, my trading plan is to trade based on key Support and Resistance levels and find out which direction the overall trend is going (Since I trade 4 hour charts mainly, I will check the Daily chart to determine trend and S/R levels). Then I look for an indecision candle and the next candle as a clear reversal of price (towards the trend). This is about where I stop because I don’t quite know where to get into the trade, where to place my stop-loss and where to place my take-profit target.
After all these years, I still seem to not understand this part very well.
I’ve always just clicked and dragged the stop-loss line to just about above (or below, depending on which direction I’m trading) the Support/Resistance and then I click and drag the TP line up to about a 2:1 ratio. This worked for my reckless demo account I had, but I’m not trading reckless right now. I am trying to learn money management. That’s the whole point.

Anyways, it looks like you (MissLexy) have a good understanding of money management, so I’m curious to see some of your other writings on this if you have some.

Also, do you happen to have another account? Or is there just another Lexy somewhere on these forums?

There is Lexys, who has been a great contributor in these forums and is someone else… Lexys is a successful home retail trader and if you look up her threads you will find a lot of her thoughts, including on money mamagement.

MissLexy’s appearance has caused some confusion, but they are different people.

[ideasonscribe]

There is Lexys, who has been a great contributor in these forums and is someone else… Lexys is a successful home retail trader and if you look up her threads you will find a lot of her thoughts, including on money mamagement.

MissLexy’s appearance has caused some confusion, but they are different people.

Thank you for clearing that up. I think I should look up Lexys, then since it seems like MissLexy hasn’t really posted on here in a while.

[bearish]

Maybe each trader they have different target in their trades, market movement that sometime easy to changed, as trader they must learn also how to determne exit point, because if trend market on sideway will difficult to set large target profit, it will not eachieved and the trend market already move vice versa.