I am shamelessly stepping in with my own view, so apologies all around for cutting in, but personally if I am in a trade placed off the Daily (or higher) chart, then I am confident of the overall move, so will take any intraday opportunities that present themselves (for instance I am doing that on EUR/AUD at the moment). Also, once my original Stop is trailed to at least BE, I will happily take further EOD Entries on the same Pair even while the original trade is still open. So while my original TP might equate to, say, three times my risk, when the market runs with me then I can bank much more than that from the one move. Once I have spotted a decent move, I find it easier to make that move really pay, rather than have to find a separate move on a different Pair. Make hay while the sun shines!
I simply make sure that my overall risk on the move is never more than it would be on a single trade (1% in my case). But once my original Stop is to BE or better then I will take further Entries or trade intraday (or both!).
Hope that helps as a further answer, hopefully Niki still wades in.
But my view would be, once a trader has really found their groove they should be milking the decent moves for all they are worth - that way, the odd stopped out trade is comfortably covered by those moves that really fly.
What I was thinking is that If our SL is at BE on the original trade and we find another entry and then price takes us outā¦ that would be a loss on a trade that was actually going to make profit. Unless the SL was moved to a place where if taken out you loose on the new entry but still end up NET profit from both trades.
Did I make myself clear cause I usually am not that good at explaining myself. lol
I have been trying to add more to my current trade in EUR/AUD but didnāt do it as I did not feel comfortable moving my stop loss(for the new entry). Even though my SL is above BE.
My answer would be this: for me, the key to successful trading over the long term is consistent, mechanical execution of an effective strategy. One element of sticking to this is to treat each trade as a standalone exercise, I almost treat every trade as if it were my first ever trade. I judge it on its own merits, the quality of that setup, rather than against my recent experiences of that Pair, or how my last trade played out, or whether I was up on a previous trade but had not yet banked it. If I have an open trade with a Stop at BE then I put my Stop there as I felt that that was the right thing to do. If the chart then gives me a good setup for a new trade, a setup that fits my strategy, and my overall risk exposure at that moment is within the parameters laid out in my strategy, then I will take that new setup, thatās what I have to do as that is what my plan tells me. If that new trade stops out, but it was a good setup and I executed it properly, then that is a shame but it was still a good trade. If my original, BE Stop is hit then that is also a shame but it has not cost me anything and it was still a good trade. (I will, however, in my trade review sessions explore whether I trailed the Stop appropriately or whether I missed something.)
If I am in a trade, for sake of argument letās say itās a Long, and I am leaving it open, then that is because my belief is that that Pair has further to rise. So if I see a Long setup on that Pair, and my existing risk on that Pair is at zero (because any existing trades have their Stops at BE or better) then it is a good setup and I will take it without hesitating.
Many people say that letting a winning trade turn into a losing trade is terrible, itās one of the worst things that can happen etc etc. Well obviously if a trader is 3% up on a trade then it hits their Stop and they take a loss then Iād say that they want to look at their trade management. But a BE Stop being hit? That is much more discretionary stuff. Some traders leave their Stops wide, a late move to BE and then leaving it at BE for a long while, because they want the amazing R:R. Others trail pretty close and pretty much always exit a trade through their Stop being hit, and take a lower percentage return per trade. As long as everything is done within context, it can all work.
However my simple answer is: each trade is an individual trade. If your BE Stop is hit one one, decide on whether you got that trade right afterwards, and if youāre not happy that you did not lock in profit then look at your trade management next time that scenario arises. For the second Entry, if you have no risk on the table and you see a good setup, then personally I would take it every time. If it turns out to be a losing trade, I will look at how I placed it, and if I didnāt make a mistake then itās still a good trade. The odd losing trade here and there will do no real damage to an effective strategy over time. Not taking setups because one does not want to offset a separate trade whose Stop is already at BE? That would cost me a lot of money over the year.
I hope that that gives you some insight into my approach.
Hello everyone. Itās been long time since Iāve posted any tradeās as I got busy with the college stuff and all.
Iāve got a year of free time now and Iām happy cuz i can devote this whole time to trading.
This thread has really helped me a lot. A long journey all the way from setting up an MT4 platform to spotting few profitable trades a week.
If i had to choose one rule/lesson out of everything that i have learnt so far, it would be āBUY LOW SELL HIGHā
If i ever had a losing trade, that is purely cause of breaking the above stated rule and nothing much more than that.
Iām still trying to overcome the emotional part though.
I have copied some very important postās posted by Nikita explaining the trading method in this thread so far and made it into a PDF file. I read few timeās every-week and to tell you, i learn something each and every-time i go through it.
It doesnāt replace reading the whole thread. If you are a newbie, you should go through he thread before you read the PDF, it is nothing but a reference guide kind of thing.
I tried my best to keep everything in order. Hope it will be helpful to everyone in here.
I was trying yesterday to transfer the file to one place and then put in chronological order but you just done the hard job, thanks a million for that.
Shorted GU.
Though previously there were bull candles, I saw price reaching key resistance level and also in H4 pinbars appearing showing loss of bullish momentum.
Shorted after the pinbarās.
Update - Scaled out 50% at 40 pips. Stopped at BE.
Loss 28 pips yesterday made 48 pips today with GU. Really wanted to post the chart but unfortunately working at the moment. I entered long on GU in the morning took 30 pips and wait for the price to come down again, and entered long again just hit my Trailing Stop took 18 pips.
Congrats on 48 pips.
More than posting the chartās where we did gain some pips, We shall post the chartās when we lost the trade, in that way we can learn more form the mistakeās. Itās just my opinion.
I want to post my trading history with the explanation but as I said earlier it is a very odd time for me, I am working London open till London close. By the time I will go home it will be another shift.
It will be very good for me as well so everyone can comments and suggest,as you said we all can learn from it.
Is anyone knows how I can post the chart from IPhone, post as picture.
Very good trade gs8888, I was thinking to go short on GU but price was not suitable for me, so I enter short on NU got only 13 pips due to the trailing stop. Unfortunately unable to upload the chart, just finished work going home.
Instead of trailing the stop, have you ever tried scaling out some of the profitās and letting the rest run, moving the stop to BE ?
It workās for me. So, thought Iād suggest you that. just my 2 cents.
Hi gs8888 yes I did few times to get some profit around 20 pips and leave rest of them to BE, it work few times for me. I think I need to continue with your advice. Sometimes I try to put the SL to above 1 hr candle, which was advice by bob. It was also really good method.
Share I am not sure where I told you to trail a stop to the last 1 hr candles high/low. If I did thats not what I meant. I use swing points to place stops. If I use a 1hr to enter then typically after price breaks into profit I will drop to a 15 min or 5 min to hunt out swings to place my stop. Now this does tend to be the high of the 1hr candle most of the time. Using the 1 hr to place your stops is not to bad to do I used to do it (probably when I told you that). The problem with that is price action alone will take you out fairly quickly. This is fine for intraday trading but for swing trading you will rarely make you TP. If you have strong momentum then yes you will fine for a while ut then get taken out.
I most likely told you that as in the beginning of a trade I use to use that method to get my stop into profit as soon as possible. But I have found using lower time frame S/R works more efficiently. Still in the end you are doing the same thing but I found swings on lower timeframe work better.
Also as GS888 said I will tend to enter at least 2 lots and cash 1 lot at 1:1 R:R. Now what I mean by this is Let say I entered 2 lots with a 20 pips stop. I would cash 1 lot at 40 pips. This gives me 2 advantages. First that is a true 1:1 trade right there. Second if I dont have a chance to move my stop to BE at that time and price turns to stop me out I still have profit even though my stop was behind my entry.
