Right now I haven’t made a great deal regularly trading the forex markets but I haven’t been trading them on a regular basis either. I would say I’ve been guilty of cashing out too fast when profit is there to be taken and on the othletting losing trades - so run in the hope I’m proved right, we all wanna be right after all.
I’m right more than I’m wrong, it feels like and this leads me to believe I’ve in the past lacked the disapline.
You know the disapline needed to set both proper stop loses and profit targets - everything you need to do, from the get go, to make sure your risk - reward ratio in your favour. Personally I’m in the favour of eeping a set stop loss until my -take profit- target has been hit, then having a trailing stop loss in place.
But I’m not sure if that be done in Meta trader, I’m sure I read some that it can or maybe each stop loss needs to be adjusted if/when the take profit/target has been hit.
I will write a bit more in detail tomorrow/early next week.
The more I think about it the more I feel using trailing stop losses is for me but rather manual resetting my stop loss every 24 hours or (depending on if you go long or short) closing my position if it drops below or under the moving average at the end of the previous session.
For example I’m going long on the EUR/USD … that means put my inital stop loss 50 PIP’S under
Scenario 1: 24 hours later the price has moved up 80 PIP’S = move my stop loss up 80 PIP’S
Scenario 2: price drops 74 PIP’s on the 1st day/session = your stop was hit and an automatic exit at 50 PIP’S
Scenario 3: 24 hours the trade is active but has dropped below the moving average late the previous session = SELL
example… shorting the EUR/USD
Next start answering these questions one by one …
- Why would you like to be a trader ?
- Which are your top 10 trading rules ?
- Which are your trading goals and why ?
- What kind of trader are you ? (position-, swing-, intraday-trader, etc.)
- Which currency pairs do you want to trade ?
- Which timeframes will you use ?
- How do you prepare before each trading session (pre-session routine) ?
- How do you finish each trading session (post-session routine)?
- Which are your risk- and money-management strategies ?
- Which are your actual trading-strategies: Chart-setups, entries, exits
- Why would you like to be a trader ?
To make money from home, whether that be Australia or the Philippines.
- Which are your top 10 trading rules ?
- 4 trades per day. MAXIMUM.
- Risk 2% of my account balance per trade, no more - no less.
- Only place the trade if the risk-reward ratio is at least 2-1 in my favour.
- Don’t allow my emotions influence my thinking.
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- Which are your trading goals and why ?
To make around $50 dollars on average per day.
- What kind of trader are you ? (position-, swing-, intraday-trader, etc.)
I would say short term swing trader.
- Which currency pairs do you want to trade ?
The big four …
EUR/USD
USD/JPY
GBP/USD
USD/CHF
- Which timeframes will you use ?
5 minute, 15 minute and 1 hour charts.
5 minute charts for entries
15 minute charts for finding general support/resistence and trend behaviours
1 hour charts for find longer term support/resistence and trend behaviours
- How do you prepare before each trading session (pre-session routine) ?
- How do you finish each trading session (post-session routine)?
- Which are your risk- and money-management strategies ?
Risk 2% of my account balance per trade, no more - no less.
Only place the trade if the risk-reward ratio is at least 2-1 in my favour.
- Which are your actual trading-strategies: Chart-setups, entries, exits
ENTRIES
EXITS
Automatically.
- Stop loss was hit.
- Take profit was hit.
Manually.
- If on the 5 minute chart, the price drops below the 20 period moving average. Sell.
- If you see a bearish/bullish candle formation, a doji candle followed by confirmation of a trend reversal for example. Sell.