A lot of what I’m going to say has already been said, but you know what? I’m gonna say it again, because the truth deserves to be repeated.
First and always - Plan the trade, then trade the plan.
Your trading plan should be able to identify trading opportunities that offer you a Reward:Risk of AT LEAST 2:1. Meaning that if you can afford a risk of 20 pips, then your trading plan should be able to identify trades that offer a potential reward of at least 40 pips, and you should be passing on any trading opportunity that doesn’t offer you at least a 40 pip return.
If you can do that much, then you’re head and shoulders above half the retail FOREX schmucks out there.
Now lets get sneaky. Let’s try having a T1 and a T2.
So say you have a set up, and your plan is to buy 2 micros at X.xx30, with a profit target of X.xx70 and a stop loss of X.xx10. You buy, set your stop loss for two units at X.xx10, and a sell order for ONE unit at X.xx70. Set the sell order for the other unit at a higher, but still reasonably achievable, price. In our example we’ll set it at X.xx90
If the price drops to X.xx25, you get stopped out and the trade is done. Such is life, tomorrow is another day. If the market swings in your direction and your sell order gets triggered, cancel your original stop loss, and set a new stop loss at X.xx50.
Now you’ve got one unit sold at a tidy profit, all locked up. If your other unit gets stopped out then it STILL sells for a (small) profit, and you have a chance that you’ll sell that second unit at a HUGE profit.
This works IF you have the time and discipline to monitor your trade. Most of us have jobs and don’t have that kind of time. And many traders don’t have the emotional self possession to monitor a trade that closely without succumbing to the temptation to depart from the trading plan and “tinker” with it.
Did I say “many traders don’t?” I think I meant “MOST traders don’t.”
So that brings us back to “Plan the trade, then trade the plan.”