Yeah it sounds simple but hard to follow after all who would want to increase their losses but have small or no winnings.
Yet how do you follow it?
Give an example does this mean you enter a trade in the negative you cut it before it increases all the time?
Well if you did that you would be losing tons of money wouldn’t you? After all sometimes price goes against your trade for a while.
Let winnings run. Sure of course let them run but you need to close them off right before price goes back so how are you going to do that if you follow letting your winnings run?
Personally speaking it’s one of the dumbest things I’ve ever heard. Ranks up there with you’re driving on a road between 2 mountains and on both sides of the road there are rocks which have fallen, then some genius puts up a sign that says “watch for falling rocks.” Anyway rant for the day.
The real killer of forex traders, when to let go of a trade; when to keep a trade. There are several wys to cut your losses to many to list. If you were trading fibbonacci the excepted range is somewhere between the 60 and 75% level. If you uses support and resistance when price breaches major support, breakout trading when price moves to the other side of the rectangle’ or stop loss is placed at a % of your account you’re willing to lose and every ones favorite observation.
First thing is nothing works all the time. Even Warren Buffit gets it wrong. I have found that the one that works for me, is to calculate based on the balance of probabilities an entry, take profit and stop loss. Some traders say keep stop tight other say give the market a change to breath make your stop wide. For me neither didn’t work. Unless you’re very experienced placing your stop loss to tight will cost you a lot of money same as placing it too far.
So for cutting losers. I have a strict set of rules before executing a trade which calls for an entry based on certiqn conditions, a stop loss based on certain conditions a and a take profit based on certain conditions. I only use pending orders and let the market come to my trade. If I get stopped out, my thoughts are okay some you win, some you lose, so what move on.
I saved let winners run because it’s a much easier. Same goes for experience the more you have the easier and more accurate you should become but until then easiest way is trailing stop.
I don’t know what trading method you’re employing if you mentioned that some of us might be able to guide you better. I am enclosing2 video’s for you to watch. Just to be clear both offer extending services. I"M NOT VOUCHING FOR THEM or any other paid service directly or in directly. However I found personally cause I have used them both that either one gives you a great trading strategy. Limit yourself to one trade a day and 1% of your account balance.
This is one of the best fib strategy video’s I have come across I used it for months and was definitely more right than wrong. Easily demonstrates tight stop and multiple profit targets if the trade goes in your favor. I don’t use it today as a starting tool, but use it more as a managing tool.
Another great video on breakout trading. I this one stops are fixed but back far enough to let market breath. Profit is based on history, where’s price been type thing. As I said I have used both and have taken parts of both in my personal trading.
If you like either of those, there are several threads such supply and demand, price action, 3 ducks all good strategies been around for awhile and have a lot of activity on their threads. Hope that helps
Gp
In a strong trend, when you see first retrace you can enter with your proper lot size, then upon getting your take profit level, you should book some profit and enter another trade on 2nd retrace, or keep holding your full position with SL at BE. In this way you can let your profits run.
This saying is telling you to let your fear of losses have you exit prematurely, and your greed to let you overstay your trade.
What you want to do is trade your analysis- you set your sl and tp in a specific place for a reason (unless you are placing it randomly, then you should get back to school).
Objectively- Is this trade doing what it was supposed to? Did something happen to objectively say “i was wrong” before it reached your sl?" Is the market going on so strong that it will most likely blow past your tp?
The golden rule of trading: “Cut your losses short and let your profits run” can be employed in a number of ways. But it is a trend following phrase. Trend followers take known risks but expose their account to unknown profit potential (no preplanned TP level). They get out with a loss at a particular price activity. They get out with a profit at a particular price activity. Example:
4 week rule: Go long at break of 4 week high with stop just below 4 week low. Move stop each week to 4 week low until it is triggered. Simple.
And what would your advice be?
Like I’ve said before, all you ever do is troll the forum, criticising everyone without ever offering anything constructive.
You’re nothing but a keyboard warrior
my advice would be to quickly come to the realization that this is a business and a detailed business plan is required for success.
secondly, if you’re having trouble creating a profitable business plan, consider seeking out information from sources a little more reliable than some screenname posting on a trading forum, with absolutely no verifiable credibility. In fact, it has now been verified that he is a losing trader, and thus has no credibility.