I am using a fib trading strategy that I am practising with. The strategy advises to take profit at the areas where price is most likely to react and number them like profit areas 1,2,3. With the profit area 1, profit area 2 and profit area 3, how do you advise to take profit? Do you advise to close a third part trade at profit area 1 and close 2/3 at profit area 2 and 3/3 at profit area 3 (closing entire trade). Or would you advise to watch the profit take areas (1,2) and move your stop loss to breakeven and let the trade run?
Welcome to the forum.
I would use whichever of those methods you [B][U]prove[/U][/B], through testing, to make more profit than the others over a large, statistically significant number of trades; and I would know the answer through testing [B][U]before[/U][/B] starting to trade.
Anything else is just going to be a [I][U]guess[/U][/I], isnāt it? 
And you surely wouldnāt want to trade on the basis of guesswork?! Itās hard enough to make steady profits with proof and knowledge and practice ā¦ guesswork leads only to the poor-house.
Sorry to say it so bluntly, but it is what it is ā¦ :33:
just got a few questions on stop loss calculations which i am practising on a demo account;
want to trade a mini account 0.1 lot (Ā£1 per pip)
1% risk of an account of lets say Ā£10,000 is Ā£100.
No of pips to be stop out= 16 pips
Ā£100 risk /16 pips =6.25 lots. is this correct? isnāt this a bit high?
I thought the 1.0 standard lot is Ā£10 per pipā¦Confused. HELP PLEASE!!!
ps Do i put 6.0 lots into volume space of meta-trader as there is not the exact 6.25 lots in the options?
Hi, youāre partly right.
On, say, eurusd a 1 lot trade equates to $10 risk per pip movement.
So, if the spread is 1 pip you start off $10 down and a 9 pip move against you would cost you another $90, losing you your max risk of $100 in total.
A 6 lot trade would cost you $60 per pip movement
Very useful features, in my view, especially for newbies, and experienced traders could also review the basics as they say)