Help putting stop loss

Hi Friends:
I have a problem which I believe most of the newbies might have too. I’m putting stop loss at +/-20 pips looking at the trend. Because of the spikes, my stop loss was generally met and I went in to loss. If I don’t put stop loss, I mentally decide to wait for some more loss, but when it reaches 60+ pips, I become nervous and sell/buy at that price. But eventually in less than an hour after I sell/buy (some times < 10 hours if drops/gains too much), it reaches my profit target. I am generally waiting around less than an hour patiently to get the target profit too, but giving up after that. My target was always between 10 to 30 pips and some times less.

In last one week, because of this, my $1k account became $290 after going up $1.3k

So, I am looking for advice/suggestion how I can improve. I used demo account before and since no emotions are involved, I always in profit. I trade in 1 or 2 mini lots.

Do I need more patience or what am I doing wrong?

Any kind of help/advice/suggestions appreciated.

Thanks for reading…

I used demo account before and since no emotions are involved, I always in profit.

you said it right there. you have to control your emotions and not be afraid to lose!! its not easy i just pulled the plug on -$2000 trade yea it stings but what if i stay paralyzed with fear? 2k becomes 7k!!!

know your threshold and stick to it.

btw welcome to babypips

ok! i know the feeling though…it actually happens to me too. As our friend suggests too, we can’t be prey of fear, cause it block us and our strategy. It will happen always my friend, what i do is setting a higher S/L about 50 or 60 pips, that way you will not be kicked out that fast from the market.

To continue your idea, fear is one of the greatest predators on the forex world, you just have to learn how to handle it and erase it from your mind. What I do for setting my S/L is to calculate the S/R that way i get a clearer idea of how to adapt my S/l and T/P, you should try it, it has worked a lot for me so far.

For me is working at a similar level I set the S/L up to 100 pips and in that way I increase the amount of money I can lose� that money is the risk assumed so I take the psychological factor out the trade. Sometimes it works

�Don�t let fear enter traders mind� but telling it�s always present so as you said we only have to handle it.
If you have a real forex account it could be harder to be sage about this thing.

I’m putting stop loss at +/-20 pips looking at the trend

Learn the currency pair your trading, mabey just focus on one. Look at your entry points, document everything so you can look back at it and see where you went wrong.

What time frame are you trading? the higher the TF, the larger the stop should be to accomodate the noise.

You might be in the right direction of the trend, but entering when a minor retrace is about to occur. So the price action comes and hits your stop then carries on in the same direction… happens to all of us. Price action is a continual see-saw so wait for the right entry.

Patience

Time frame and the pair you trade are definite factors of what your stop loss AND take profit should be. Some pairs are more volatile than others, and can hit 20 - 30 pips in a matter of minutes.

Take your time to learn the currency you trade and stick to a plan. Having a defined set a rules for entry and exit can go a long way. May I ask how you entry a trade?

for quick replies. I tried one more time to see if I was missing the profit because of lower stop loss that I had been using. I believe that was the case. My entry to the trade has to be tweaked, but I seem to be well on the trade in most of the cases to get the target profit.

The pairs that I most of the times trade are EU,GU,EJ,and AU and sometimes UC. But I focus more on first three pairs.

I generally trade on m15 and H1 time frames.

And also, the comment on setting stop loss 50-60 pips - If my profit target is 20 pips, then do I really need to risk 50-60 pips on SL? Yesterday trades that I’ve done with demo account were profitable. If I would have done on live account, then I would have closed my trade early before reaching profit target which was set to 100+ pips.

I will try to keep my emotions out/minimize from my trading. For this to happen, what I am planning to do is look for trades that give more than 50-60 pips, put stop loss and profit target to same # of pips and keep away from charts for sometime and see where am I. I believe, that may make lot of difference.

Again thanks for all your inputs. They are very helpful

newtobips

I use S and R lines and candle stick patterns. Most of the times that is giving good results. Apart from that I use channels to get the trend if at all I miss to SEE.

Thanks

The pairs that I most of the times trade are EU,GU,EJ,and AU and sometimes UC. But I focus more on first three pairs.

If your just learning, pick your favorite two pairs and stick to them. Keep in mind, the EU,GU,EJ and somewhat AU are highly correlated, (meaning they tend to move in the same direction) so if you are placing multiple trades on the different currencies, you are in essence multipling your risk.

I generally trade on m15 and H1 time frames.

profit target is 20 pips

Again, i don’t know how long you’ve been trading, but 20 pips off the 15m would be ok (depending on the currency pair), but in my opinion, not off the 1 hour chart. Your entry point is the key to your success, I would suggest that you look at the 15m, then look at the 5m for your entry…

Cheers

Support and Resistance use is one of the most used and found ideas of successful traders but do you mean you use it in each trade? Getting also ideas of candle patterns could complicate your trading
I’m dealing with it

I also work on the S/R to calculate my T/P and S/L. I t is really helpful tool, however it doesn’t always work. I’ve lost a lot sometimes just because using this as my only guide. Have to be careful how you use your tools.