I’m so new at this whole thing I’m still covered in goo. I’ve gone through the schooling process but I’m still lost on a rather important idea. How do you set up critera to enter or exit a trade? Is it based on the indicators you use or a formula or just gut instinct? Do you simply put a stop-limit setting in place to exit so you make your required pips per day? Thanks for any help anyone can offer.
That varies wildly depending on the strategy you are using. Best thing you can do after going through the babypips school is to demo several of the free systems on here. Much of what you are talking about is learned as you actually try to do it in demo. As you do it lightbulbs will go on, and you’ll be like, “o now I get it.”
Demo’s are absolutely free, so you can make all the mistakes you want and even just screw around with every little thing and see what happens.
A lot of it will depend on the type of trader you are and the type of trade you have entered. People might disagree with me but I see trading as part science and part art. With that being said I never close a trade off a pure “gut instinct”, I had some type of a plan when I entered it on what the exit strategy was. At the same time that plan is flexible, I always close a trade if it looks like it will go against me, remember that pips kept are better than pips lost and there will always be another trade.