This case happens to me everyday. I wonder how you guy can handle this. The trade has 1/3 or 1/2 or sometime a little bit profit then go back. Do you follow your plan (in this scenario a win trade will be come a lost one) or just take the profit then the price starts going against to your way?
2 Likes
There is no simple solution, as it depends on many factors. The main issue is that you have no control over what the market throws at you.
If your method and process is profitable, you could just place your T/P & S/L and forget about it. Thatās what I do. But my process involves determining where to place my T/P - using RRR is a hit or miss redundacy.
That means seeking out price areas where losing traders will close their positions or get stopped out. Then placing your T/P well away from that price.
Thatās just a quick starter, you need to be smart when placing T/P and S/L points.
2 Likes
It might be worth going right back to the set-up, way before the trade entry signal. What I mean is trend.
Trades in the most well-established consistent trends tend to have higher win rates. This is regardless of entry signal.
In a steady trend its a good idea to use a wide stop-loss (3 x ATR(14)) but to pyramid when the positionās profit equals its risk.
If a counter-trend trade is taken, set a TP but donāt be ambitious. A low proportion of counter-trend trades is going to reach as high a r:r as 1:3, so 1:1 or 1:1.5 might be more realistic. I still use a wide 3ATR SL.
2 Likes
i would find real traders instead of listening to random people on forums. especially these two
Youāre welcome.
Iād say also you should press jcena4 to expand on effective trading tactics. I hope this might be useful for you.
2 Likes
Itās a very big question that you raise. I was always getting stopped out and so if my trades even went into profit, I was closing them down and making minimal profit, which sounds like may be similar to your issue. The traditional style of trading (wait for set-up, set stop loss, set TP and wait for profit or accept your loss) didnāt work for me, so I had to adopt a completely different method of trading, which iāve since learnt (from this site!) is a modified āGrid Tradingā method, which doesnāt rely on stops. I guess what Iām saying is experiment about a bit, if one method isnāt working for you. There are lots of different ways to do it.
2 Likes
Very sound advice! I suggest analyzing past trades and see what would have worked. Maybe you could have moved your SL to BE, I donāt know. But analyzing your losses is key in my opinion.
2 Likes
Iām following a pro-trader and I learn a lot from his site. I also appreciate all comment/advice/suggestion from this forum even though they are newbie or experienced trader.
2 Likes
When this happens to me, I consider that I had a bad entry. Lotās of times this happens when we try to get in a trend at the top, and weāre being impatientā¦ and then it immediately retraces to various fibonacci levels. I try to get in an uptrend once it retraces down a bit to avoid getting in at the top of a trend. I hate heavy drawdown LOL. I want it to go into profit as fast as possible. And a good entry usually does just that.
3 Likes
I agreed with you, when I checked back history, I see some trades had a not good entry.
Yes, at this point in time, it is prudent to take your profit before the price begins to move against you.
1 Like
Yes, this is the best way to avoid winning trade becomes the lost one.
never let a profit trade end in losing ,thats devastating.
if your system let you do that ,you need a better plan ,that knows you.
2 Likes
Thanks for your advice, @fyon26!
Youāre right, ānever let a profit trade end in losingā.
Sometime the price goes against my way but after that it turns back to profit target, thatās why I want to follow the plan, it means there is no action on it. But most of cases, it goes direct to Stop Loss, 