THERE YOU GO… GOOD WORK MATE
that’s what we want
we want more of these moments 
hehe
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R:R = risk reward
S/L = stop loss
T/P = take profit
B.E. = ?
MT-4 = meta trader 4
EA = ?
FX = forex
BB = business to business ???
HA = ?
EMA = exponential moving average
SMA = simple moving average
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Ah okay.
R:R means risk:reward so if you enter a trade with £100 at risk and an R:R 1:1 then it means your take profit is set to make £100 also.
SL = Stop Loss
TP = Take Profit
Edge = means that the probability of you wining the trade is higher than what you would need to break even. So if I had the same trade with R:R 1:1 risking £100 to make £100 then I would need a probability of winning a trade higher than 50% to make money.
If I entered 10 trades with a probability of winning @ 60% then I would win 6 trades and lose 4 trades. So I would make £100 x 6 = £600 but lose £100 x 4 = £400 and my overall profit after 10 trades would be £600 - £400 = £200.
So in your case you are looking to use technical analysis to figure out a way to tilt the odds of winning a trade in your favour such that in the long run, considering all your profits and losses; you are making money.
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Break Even
Expert Adviser - Program to automate some of your trading including trading itself.
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sorry I just noticed this:
HOW DID YOU CALCULATE THAT?
- I use the trend line, look for S&R and then calculate my entry point, SL and TP from that information. I’d like t do more technical analysis, but I work during the best trading hours and I don’t want to download MT4 on my work computer.
Why MUST IT be a Max of 5 Pips S/L?
- I was basing that number on your suggestion of trying to get 10 pips per order.
Why does the T/P Price Determine the S/L Position?
- I thought that my SL had to be less than my TP. But I was wrong because I was constantly getting kicked out of the trade before I could reach my TP
I want you to consider these 3 scenarios
Scenario 1
T/P = 10 PIPS S/L = 5 PIPS
I will consider those scenarios.
Very good
B.E. = Break Even, as in MOVE TO BREAK EVEN as in , i you have a stop loss 30 pips below and price goes 50 pips in your favour, it’s a good idea to MOVE TO BREAK EVEN by moving your stop loss to +1 Pips in profit
hence MOVE stop loss TO BREAK EVEN
EA = Expert Advisor
HA = Heiken Ashi It’s a type of Candle, a HA Candle in the HA Indicator. it only applies if you use this indicator but people use the term a lot and it’s good to know
like … maybe you don’t use Moving Averages, but you should still know what EMA and SMA means
and you do
now this one made me laugh
hehe
No… it’s BOLLINGER BAND - it’s a type of indicator
now do you understand what a SIMPLE MOVING AVERAGE DOES
and what and EXPONENTIAL MOVING AVERAGE DOES
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i kind of thought you were ignoring it
but good since you noticed.
well this explains how you achieved your ENTRY
it doesn’t tell me how you concluded where the S/L should be
hehe
Exactly
but i didn’t tell you where to put the stop loss
i just told you how to simplify getting 50 pips a day, as far as TAKE PROFIT is concerned
you did waht most newbies do. you stick to this R:R 1:1 thing, as if god wrote the rule in the 10 Commandments
as you already know, it doesn’t work like that
and… there you go. EXACTLY
this is DEMONSTRATED LEARNING, which is a lot more useful to you then blindly listening to someone.
KEEP TESTING THINGS MATE… good work
@MiiMee
i just got like… 6 Likes hehe
i gotta admit i’m feeling really LIKED right now, Kinda warm and fuzzy as well
i look at the notifications and it was like WHHAAAATTT
thanks mate
Good monring guys,
Sorry for the delayed response. I’d reach the number of replies for my first day 
Thank you both very much for all of your help. I’ve actually had 3 our of 4 winning trades today. WOO HOO!!!
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Good work mate, KEEP GOING, KEEP TESTING
formulate a plan and stick ot it
it’s been a pleasure helping you … ok
Good work so far, keep it up
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Hello MiniMee, let’s talk from a vegas gamblers perspective and how to get an edge which will remove the gambling aspect from anyone’s trading.
With a one to one tp SL ration you had better come up with a serious win-loss ratio. As a newbie this is hard to grasp and harder to do.
First off you said you have a 3K account so your target should be from 1/2% to 1% positive pips daily thus the range to expect would be 30 pips on the high side and 15 pips on the low side. No it doesn’t sound like much but that will grow as you are adding profits to you account. I remember about a year ago when I tought 3 pips per day was nearly impossible.
Now how are we going to reach that initial goal? We have some rules for that but I will keep it simple beauce I am not good at anything math. Learn these rules now and never look back for the rest of you life.
The nane of the game is RISK MANAGEMENT, got it. The following is for one daily sesion of trading. It starts over every day not every time you log out and back in.
-
do not risk more than 2% of the account size on any one trade. In this case $60 bucks so the easy way to do this is just count each pip as a buck but you could do the quote pair conversion for more accuracy. But is that amount is hit you must close the trade.
-
Do not risk more than 5% of the account total on any group of trades. That means if your trades for the day total a negative amount of $150.00 your done for the day, period.
In china they have large trading rooms staffed with traders. If your account goes negative at any point you must sit down nothing but looking at the charts for the remainder of the day…
- the max number of positions you can have open at any one time is 50 position for 10K and 20 position at 1K and I don’t know what that percentage is cause I stink at math but I think you get my drift about 25 positions MAXIMUM then no more period no ifs ands or buts.
Do that and even if you have a losing day you will have $$ left to trade another day.
Now let’s take your question from another POV of a TP/SL ratio. On another post I put the win loss ratio down to be profitable for various rations. Most traders say I have xx win loss ratio and “assume” they are profitable until they get their brokers statement or call because of insufficient capital to cover the risk, losses and charges. . This brings up a gambler term called and the EDGE but in traders terms its call EXPECTANCY and is Oh so important. And believe me I know this math.
expectancy = (number of winner less the number of loser) divided into the total $$ for that period of trading.
'll be your gonna pop when you compute this… but it will grow positive and keep growing as you learn and improve your your trading and mental control skills.
Now we can talk about the win-loss ratio. It’s just not as simple as saying I’m going to bet x amount of pips that I am right against a pot of equal size 1:1. Because at this stage it is gambling not trading. You may not believe this but gambling is fixed and the house always has the edge. In forex trading it s fixed by the big money namely banks and large institution that can move the market and that is what creates the validity and supply and demand zones. By learning to identify these zones and the price imbalances they create is where we make out money!
See the COT report at barchart.com. BTW we focus on the top chart and Non-Commercials or Large Speculators, consisting of Managed Money and Other Reportables (Green Line)
Moving on so how do you get an edge? I told you just above… how great is that… and at 1:1 you’re going nowhere fast the fast lane. So what’s an honest trader to do to increase the edge, you got it, increase the trade ratio. I knew you were a bright person or you would not be here in BP. A 2:1 ratio is good but 3:3 regularly is better and so on and the 3:1 is best and most of all you will only need a 33% win ration to be profitable as winners will make up for a lot of losers while we are learning. That is just so exciting!
Now how to plan that, notice I said plan that ratio but I just as well might have said plan that trade moch of which is outside the scope of this question/discussion. Assuming and I doubt it very much you have done a strength and analysis worksheet of the a group currency pairs available for you to trade. For example I have a group of 28 usual suspects that I review every saturday morning for potential trades in various time frames as part of my weekly setup. I will guess you have no clue at this point of the worksheet but have some methodology of selection your coieces to trade for the day or week. If you don’t use the investing.com “technical summary” or if you sign up for a free account you will get the “technical analysis” as well. Or just trade the pairs on the first page or even the majors.
Ok now you have a pair that fits your particular trading criteria. review the time frame from higher to lower and identify potential exit tragests for a trade then on the same chart identify entry point and measure the number of pips between the two points. On most charts there is a cross hair you can use to identify the spread. Lets say its 60 pips and you want at 15 pip SL on a 1hr chart. that would be a 4:1 ratio BTW I never use more than a 15 to 25 pip SL for day trading and usually 15 pips is all the risk I can handle. So your choices is 15 pip SP 4:1 20 pip SL that is 3:1 and if 30 pips it is 2:1 the minimum ratio you want. I do hope I’m not boring you and putting you to sleep. If you do not find a point that can fit you move on to another time frame or pair and do again.
At first you will find the process mabe cumbersome and difficult but hay if it were so easy everyone would retired in the Bahamas and be drinking Penacoludaas in the shade staying the retired traders hotel. Remember trading is a zero sum game. That means for every dollar won someone loses a dollar. What share is yours??
Along the trading trail you will improve your skills and the rest will follow along. I suggest you keep a trading diary of your trades, why you took the trade what happened what the weather it is and how your are feeling then. This is important to help your analysis and improve. Make sure where every your trading at you can download a spreadsheet of your trade history to analyse and review.
I know I have let a lot out and there are terms that may not be understood by the newbie or rookie as i call myself that’s one up from a newbie. But these are questions for another day as I am tired and it’s close to my bedtime.
BTW the above process of risk management is part of a term we at the fund call the the Benjamin Formular. I sure hope if have blessed you and done justice to the risk management program And I might add this is currently being used by 500 actively funded trades and about 5,000 students at the Fund.It was developed by the funds founder and has been used successfully by thousands of consistently profitable traders.
Is it the only way of risk management most likely not but it is the only risk management system that has is rule based proven and tested over and over again. Bottom line it has changed a multitude of lives and fostered many very wealthy traders.
That’s my Story and I’m sticking to it.
Peace and tranquility
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Please don’t take this the wrong way, but I really think that both daily targets and targets measures in terms of pips are basically misguided.
Neither is really a helpful metric, and there are much more useful and meaningful ways of monitoring your progress.
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I sort of disagree with you in some ways here - but also agree :-
Each trade has its own movement potential.
Putr stops at logical place and put TP at logical place - then go see if the trade R;R sits in your comfort zone. I think 
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Making any specific profit goal for per day is not good. By doing this you are giving yourself challenge unconsciously. When you will fail to do so, your ego will get hurted. As a result you will make impulsive decision. Here is the difference between forex and other work.
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@FerdousAzam, while I agree with your statement in part for newbies and rookies to learn pips first and money will follow. After one gets the hang of making consistent green pips I think it is wise for the trader to to switch over to using a daily percentage of of profit but pips will do as for many it’s easier to track… For example my daily goal is from 1/2% to 1% of my account total in pips however at the end of the week or accounting period I look for the same in an increase of the account dollars and to be rolled back into the account.
Why the switch, positive pips doesn’t always translate into positive dollars. Just like a positive a win-loss ratio doesn’t always mean a positive expectancy.
In the fund we call this money risk management using the Benjamin Formula.
Happy piping!
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Lets remember this is a business and like all business success or failure be measured in order to become consistently profitable traders.
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I completely agree @midwest. I keep my position size in my demo account really small, so I can test out different indicators and strategies while trying to reach my goal of 50 pips a day. I don’t really get discouraged when I lose money or excited when I gain. My goal is to understand the currency pair, the forex market, and which strategy and indicators work best for me.
@MiiMee, yepper and that should be everyone’s goal. That is specifically why I joined the fund. Not to get funded with no risk but to learn to trade consistently profitable and not take the next ten years doing it. But funding is a great icing on the cake for a job well done.
Plan you trade and trade your plan!
I love that catch phrase 
@[quote=“MiiMee, post:1, topic:140835”]
I set my stop loss at 20 pips I kept getting kicked out of the trade. My goal is to gain 50 pips a day so grow my account slowly.
[/quote]
MiiMee, I hope your training and Forex education are doing exceedingly well.
Nothing wrong with a 15-20 pip SL depending on a few factors. If you add the amount of your SL to the amount of you TP, that is your total risk.
For the TP do you look and analyze your trades, maybe a journal or diary. I ask because an important item to know is if your closing trades early or they are running their course to the TP.
Also to be more accurate on the advise be that as it may;
What time chart to you plan your trades?
What time chatr to you enter on?
What size is the account we are discussing so numbers can be put into proper ratios.