Hello,
I m new to this. I wanted to know if I should stick to my Stop loss and take profit I initialized ?
The problem is that i keep checking the states every 5 minutes and i can’t focus on anything else.
Should I setup and forget till i receive the notification ? And if so how to forget it ?
Sounds like you only have half a plan - I’m not saying you need to devise a strict and lengthy list of rules and rigidly stick to them but you do need a framework.
After you enter, price can only do one of two things -
- rise
- fall
People say that the place to put your stop-loss is where the idea behind the entry no longer applies. And the place to out your TP is where price is probably not going to go any further in your trade direction right now.
Occasionally, you might need to under-cut these price levels and exit early but your strategy should be based on your knowledge from TA, demo trading and back-testing so that you usually leave it alone - let price hit one level or the other.
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If you’re trading a live account, you’re in trouble because your mindset isn’t capable of letting your trades run. On a demo account - it’s easy, just set the parameters and go shopping. When you get back, see what’s happened. Carry on experimenting.
I suggest you need to read a psychology book e.g. Bulletproof Trader by Steve Ward. It’s expensive but it should answer all your questions and doubts, and reset your mind to accept losses are inevitable in Forex trading.
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Agreed, you need to spend more time on demo if you are using real money at the moment. You need to have a plan and set of rules in place that mean your SL and TP are esttablished before you take the trade and you are aware of the potential downside to the trade losing and be comfortable with it. As above you should be able to place the trade and then just check in on it later or when you get an alert that SL or TP has hit, analyse what went well and not so much and then move on.
Sounds dull but a win should unmove you as much as a loss.
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Try this on MT4, Menxi. Set up a trailing stop loss on your trades - view on UTube how to set it up. What it does is to maintain your original stop loss closer to your T/P position by whatever number of Points you choose. Bear in mind one PIP = 10 Points.
You can then only lose a trade if your S/L occurs before you’re in profit. Once in profit territory you can only lose a proportion of your profit by the pip limit you set.
I would advise you use a sensible S/L initially, one that risks no more than 1%-2% of your capital. Use the ATR (Average trading range over the last 14 days) number as a guide. If possible within your capital risk band, set your initial S/L at 1.5 - to 2 times the number.
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Setting up an stop loss is an art. You need to have a good idea of support and resistance. And how price work in support and resistance area. Focus on increase your knowledge and skills. Slowly you won’t keep checking the chart.
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From your post, it is not very clear that you are using a demo or a live account, but looking at your anxiousness, I will assume that you have started to trade on a live account.
If you have not taken any formal training in forex trading, then I will suggest that you watch some youtube videos. And then every strategy that you learn, apply that on a demo account. After you feel little confident about your strategies, you can move to Live account (that too with the smallest deposit possible).
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I think it would be best if you can. Stop loss and take profit can help you save yourself from unacceptable losses.
If it’s been working for you then yes, and if it hasn’t been then I don’t see any reason why you should.