Trade management

Hi my name is Alex I’m from South Africa and I got into trading about 3 months ago. Since then I have just been learning and learning about forex and technical analysis. So I have a strategy in place but the only thing is that I don’t know how long I should keep a trade open because it goes into profit but I use a break even method to abstain from a 1% loss and by doing this I always break even coz I don’t know when to close the trade. It never hits take profit.

Ps I’m not a one message wonder I’m here to Stay thanks in advance

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How do you identify where to set your stop-loss and your take profit?

PS. Welcome to trading.

I don’t trade with support and resistance. But I do use rayline to detemine where price would probably bounce off for the second so I’ll set my tp on that same with sl

What’s rayline?

What does it mean, bounce off for the second?

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Rayline is like a support or resistance line but it only had price bouncing off it once so the second time it does hopefully you predicted that and made a profit

the line with 3 dots is a ray line

OK thanks. I’ve read something similar from Al Brooks where hes says notice where price bounces off a level, then the second time it bounces off the same level (upwards or downwards) will be the big move and that’s the one to join in with. But I think there’s more to it than that: in fact he apologises himself for making his writings on his tactics like this so hard to follow. I can definitely suggest delving into his writing and clips.

Hello @Apexalex

Im sure you’ll get a ton of good advice but let me just say that im impressed by your breakeven mentality and and your 1% cap on risk. If you maintain that same discipline when it comes to risk management and continue to grow as a trader, I have no doubt that you will be successful as long as you DONT QUIT. Never give up my friend, thats the key.

I wish you much success and many blessings. Best of luck to you.

My courtesy for being a new member.

Hello Alex, i admire your trade mgt technique… Really disciplined approach…what i would say though is, theres still room to modifying(improving) your trade mgt over time… But i admire the mindset…
If you’re concerned about your trade not hitting your tp, id advice you work more on improving your technical analysis skills… Also know that it is not cast in stone for price to hit your tps… The bottom line is you make profit… If price gets to certain few pips away from your tp, you can take profit and walk away… The market sometimes can be really unpredictable…

Thanks for everyone support. Thanks AGh7, PanchoVilla84 and tommor for the guidence.

I have studied Al Brooks closely and base my short term swing and scalp trading on what he teaches. His ability read price action, I believe , is second to none.

Cheers

Blackduck

Hi alex, well done, theres many ways to progress from where you are. The first is analyse your trades at the end of the week. You want to see how far your trade goes onto profit. Then analyse which is most profitable. Depending on that make it your take profit.

You may also find that your original stop loss is too far away as maybe you dont need it to be where you’re putting it. This will mean your take profit wil not need to be as far away either.

Yeah I figured if my trade goes in to Profit il just move my Sl into profit region so I still walk away with a profit even though my analysis was half way wrong thanks man

not the best approach, it turns out that in the market you have to be constantly to catch such little things, I probably would not risk working like that, although it sounds good.