I am reducing the risk of the trade being stopped out. I’ve dabbled with tight stop losses in the past and whilst stop losses can lead to big winners, they can also lead to big drawdown.
fingers crossed that you are right about the direction you are trading in; would be a big blow if you haven’t corrected your position size in relation to your stop.
You guys have an excellent thread going here. Keep doing what you are doing and you’ll find you’re making the same mistakes less and less, which is the real grail.
I read through all the posts and I have some suggestions if you don’t mind. I guess on the other hand it doesn’t really matter now that I think about it, cause I’m posting my suggestions now.
Personally I think you’re on the right track, but this may help you. This is my personal opinion and how I trade myself. Most of my trading happens on the 1 hour and below, actually 30 minute and below. I think your trading would follow under the category of in and out. I’m not talking about automated, or 1 minute charts or 2 or 3 pips. I’m talking about trading with a fixed number. I trade a fixed % of my account. I look at the probabilities of making the % vs the probabilities of losing the %.
I found that works best on lower time frames as well as only major currencies. I have found anything above the hour time frame does not work as well if you using a fixed number or fixed %; there is just too many variables that can go against you. I mostly trade GBPUSD but if I can’t find my setup there, I go down the majors till I do. If I can’t find what I’m looking for after the majors, I don’t trade that day. I trade between 3 and 5 times a week and by trading the overlap between the London close and NY open I am usually done before London close. I think you also find it you avoid trading 20 minutes before economic announcements and 20 minutes after you can avoid the major volatility that stops you out. As well avoid trading 20 minutes before the open of whatever session you’re trading. Another trader added wait 20 minutes after the open.
Anyway great thread. Best Wishes and Continued Success
Gp
“I trade a fixed % of my account. I look at the probabilities of making the % vs the probabilities of losing the %.”
Spot on. Hopefully we will be good at weighing the probabilities 
Basically we’re not so much trying to pick tops and bottoms but more profit areas. All we want is on the balance of probabilities hit the win% before hitting the lose%. The trader that I talk with about these things told me not to worry about small profits in the beginning, as you get more confidence in your system the entry or exit points won’t change it’s the profit areas that change if you’re doing what you’re suppose to. But that’s for another day
Still in the game with my long trade on nzdeur.
I’m on holiday now so won’t be putting on any trades this week.
Nzdeur profit target just been hit. Happy days.
I refer back to my post on 4 July at 12.17pm. Had I gone short on gbpjpy my profit target would have been hit today.
Merry,
Are you still trading?
I’m back from my holidays and have a limit order to sell EURJPY at 137.80 with a 30 pip SL and 30 Profit target.
Had I been trading last week I would have had 3 successful trades and 1 loser.
I’ve cancelled my order on EURJPY as price has moved too far away.
Let’s see what awaits tomorrow…
I have limit order to buy AUDGBP.
Exactly, that says it perfectly…
“RETAIL TRADERS ARE CORRECT ON DIRECTION MORE THAN 50% OF THE TIME BUT MOST ARE UNPROFITABLE BECAUSE THEY LOSE MORE MONEY ON THEIR LOSING TRADES THAN THEY MAKE ON THEIR WINNING TRADES.”
My limit order on AUDGBP has been filled.
Re my limit order on EURJPY yesterday; had I simply entered the market at 10am (which is when I look at the charts) rather than having a limit order then my profit target would have been hit today…
Don’t you just hate it when price gets within 3 pips of your profit target then retraces?!
LOL, I know…had the same issues with cable…but guess that’s just what the day had to offer…which is why I always have a football handy, for one, it sure helps to kick something around when frustration creeps in…
It gets worse, price went onto retrace near enough a full day’s atr and hit my stop loss.
Ah well.
Got a limit order on gbpjpy to go long.
Limit order on GBPJPY has been filled…
GBPJPY stop loss hit…OUCH!! As soon as my order got filled, price did a handbrake turn.
The market can be a cruel b****. On my AUDGBP trade yesterday, price retraced 3 pips from my profit target, did a u-turn, hit my stop loss, carried on for just a further 2 pips and then did another u-turn going onto my profit target! You couldn’t make it up. I don’t know whether to laugh or cry.
