I set a limit sell order on GBPNZD below 1.8700 just below the support/resistance. It got triggered, and as soon as it reached 60 pips, I put a 60 pip trailing stop. Unfortunately, it was hit (trailing stop) before reaching the assigned take profit. This trade gave me 0.21% of funds.
I’m down to -2.89% of capital currently. I’m hoping I could get out of this loss before the end of this month.
EDIT:
I was thinking, I should have just put the stop loss at entry, just to remove the risk of loosing something in case prices moved against me. But the pressure of making negative funds is getting the best of me. Next time, if prices are moving like this trade, I should just put the stop loss at entry.
After around 8 hours, this trade is now 50 pips, and I have moved the SL to 49 pips, slightly above the next resistance level. (SL is red horizontal line, TP is green horizontal line)
EDIT:
immediately after moving the stop loss to 49 pips, this trade hit its Take Profit at 91pips! Whoohoo!
I made a mistake with my entry, instead of giving it a 1% risk, I accidentally made it a lot lower. So this trade gave me 0.45% of my funds.
I think I’ll be doing this for a while…setting limit orders above/below certain price points. In that case, I’ll be a bit sure of the trend of the price.
EDIT:
This trade got triggered. It’s now Trade 18 for February.
Like this set up. I too waiting to Short AUDUSD at trend line (which is in line with Fib 61.8 level and previous support) on some candle stick confirmation. Already posted in my journal.
Thank you Bijoy for posting your trade ideas. I somehow got this ideas from your posts in your journal. I love your journal by the way! I always look at your journal and am simply amazed at the trade ideas that you get! I always learn from you…
I’m now just waiting for my trades to be triggered.
After around 17 hours, this trade met a stop loss at -31 pips, giving me a fund of -0.92%. Maybe I didn’t set a stop loss wide enough, or prices are just really moving against me. I’ll see what I can improve.
Here is a possible trade on EURUSD. I got this trade idea again from Bijoy. I’m waiting for prices to go past another support level. Hopefully this limit order gets triggered.
As I’m at work, I’m not able to watch over my charts full time, so I’m waiting for trade ideas to be posted, then check my charts to see if I can enter the trade (or set limit orders).
EDIT:
Oh, my take profit is the green line, stop loss is the red line, and entry will be at the white line. I’m thinking, I might even need to lower down my stop loss to cover behind the nearest support.
EDIT:
This trade was triggered, but was stopped. See trade details below.
My trade 15 GBPAUD is now up by 60 pips, so I moved the SL to lower the risks.
Unfortunately, I made a mistake with my entry. This trade is just below 0.5% risk, instead of a 1% risk! An unproductive mistake, I should say.
EDIT:
Whoohoo!! This trade [B]hit its take profit at 91 pips[/B], giving me a fund of [B]0.45%[/B]. Not bad for a mistake in entry.
Here is a trade idea on NZDJPY. I have set a limit sell order at the white line. Stop loss is at the horizontal red line. Take profit is horizontal green line.
EDIT:
This trade was never triggered, prices moved the opposite way. So the trade was cancelled.
I guess this type of strategy is safer for me. It gives me more time to study the charts, set a limit order, and if prices moved not in my direction, then I’ll be safe: no loss.
What’s dangerous is if the limit order gets triggered, then prices moved against me.
I think I just need to find a way to calculate my stop losses better. That I’ll try to look at.
This trade got triggered at 1am, Take profit is 40, Stop loss is 32. Now I’m not very hopeful about this trade, as the stop loss seems to be too narrow. Setting too narrow stop loss is one lesson I’ve learned from previous trades. I am not willing to widen it up as it will increase my loss if it is hit.
This trade met a stop loss at -32 pips. This trade gave me around -0.9% of funds. (I’ll try to post a screenshot of the charts tomorrow, as I cannot log into my account now, and I’m getting sleepy).
My 4 previous trades (16, 17, 18, 19) all met a stop loss. They all gave me almost -1% loss each. So far, I had a couple of winning trades (almost same number), but they were not enough to compensate for the loss because I did not eye for trades more than 1:1 reward-to-risk ratios. That one I need to change!
I need to stick with my plan, to only take trades with at least 1.5:1 reward-to-risk ratios (ideally 2:1).
Also, I need to be careful when making trades, as there were a couple of mistakes I did: one loosing trade had a risk of more than 2%, one winning trade with a risk of 0.4%. If these kinds of mistakes continues, I’ll be doomed!
Try to trade with constant risk in all trades like 2% for 50 pips, 2% for 100 pips, 1% for 40 pips and so on. Also be strict in RR. A minimum of 1:2 is appreciated.
Let the stop loss is of any number of pips. Don’t fix risk, based on stop loss of an independent trade. Let the risk be fixed for fixed pips in all trades.
I will explain it with some closed trades, I had earlier
[B]Scenario A: 2% risk on every single trade and RR 1:2[/B]
[B]Net Result: Total Pips: +40 pips, Return, +1.6%
[/B]
In both cases, pips gained is same(+40), But in Scenario A, return is -2% and in B it is +1.6%
I made a nice 6.3% return in the first 14 days of this month with a risk of 5% on every 50 pips. (You can see it in my journal). Now I revised my risk as 3% on every 50 pips for the rest of the month.
Every trader has their own ideas and concepts of risk management. This is just my thoughts and is suiting to me.
Hi Bijoy,
Sorry…the TP, SL & results are the same for each trade in each scenario…they look exactly the same except the Return % is different between A & B…how’d you calculate each scenario?
I think his assumption for putting lesser risks on those trades with lesser number of pips (for stop loss) is that those trades have lesser room for movement, therefore are easily hit with stop loss.
I had trades with 30 pips, and 100 pips stop losses. I should have put lesser risk % on the 30 pips compared to the 100 pips, as the 30 pip stop loss can be easily hit (since it has only 30 pips).
