Dear seniors,
I'd been having a continuous loss for the past few days on my demo account. Couldn't have imagined if that's real money I'm trashing in.
Currently I'm setting my stop loss at 30 pips and takes my profit around 15 pips. Is there any problem with this? Or am I too greedy? I've really no one to turn to and hope someone may share his/her precious knowledge with me...
Thanx in advance to any kind soul. :(
Hi
You do not tell us anything about which strategy you use!
But it seems like, that you have a problem with your money management, using a stop loss at double the size of your limit (target), will undermine your account.
For a start try using risk to reward in the size 1:2, at least, which means that if your stop loss is set at 30 pip then you must have a potential winn at 60 pip.
In that you can loose 50% of your trades and still make a plus on your account.
Regards
Marcell
That depends on your trading style and what system you are using. People will be able to advise you better if you explained your trading method
Go through the babypips school and read about money management and Risk/Reward ratio
Oh!! thanks Marcell!!
Actually I was trying out the strategy that babypip suggested in 1 of the school topic using moving average, RSI and Stochs + a little condition I came up with.
Back to the charts, I’m trying the 15mins, 30 mins and an hour frame. It seems like when i set my stoploss to be around 10 ~ 15, it gets hit so easily by the random spikes. :mad::mad:
Hi again
Remember that no matter which time frame you use, the risk/reward ratio have to be in the right “mode”.
Also remember that the losses are a part of your day if you chose to make the trading a part of that day.
Kind regards
Marcell
Thanks Marcell. Will keep that in mind and start practising tomorrow!! Deeply appreciated. 
If you are starting out its easier to trade higher timeframes. Maybe experiment 4 hour and daily charts.
And if you find you still get stopped out alot, trade half of your normal amount but double your take profit and stop loss. That way you will still have the same profit and loss value but more safty from spikes and whipsaws
Thanks for your advice. Will try that out together with the risk:reward ratio thingy.
The only issue that’s bothering me is that different timeframes seems to have lots of inference over one another. Still can’t figure out the details yet. But yeah. Will try higher timeframe and double the SL and TP. :o
Hi Xishuo
Which currency pairs are you trading ?
Hi, I’m currently playing with the exact same system you have mentioned. Note that the settings that were used for the moving averages, RSI and Stoch were meant for daily charts.
I have seen one thread that attempts to use the same system, but on hourly charts. You should probably check it out and see if those settings help you out any. I’ve personally not tried it, but it may work better for you.
There is some good advice here, particularly to look at higher timeframes.
Someone commented on the ratio of risk to reward that you have there - 30 pip risk to 15 pip reward. As this is 2:1 you would need to have a high win-rate in order to make this approach profitable - winning 66% of your trades would mean you are still only break-even. So although there is nothing wrong with higher risk-reward it is only suited to high win-rate systems.
Another thing to consider is where you place your stop-loss. Rather than always using a fixed amount - 30 pips - try looking to place under a recent low or S+R line. This will reduce the probability of your stop getting hit and then price continuing in your direction.