Quick Tip for Traders: (Please Read)
Updated
In the past I've often left trades and forgotten I had them open.
It's ALWAYS ALWAYS ALWAYS IMPORTANT to place a Stop Loss and Take profit, for every trade you place, especially if you Day/intraday/Swing & Position trade. I don't often scalp and if I do I'm usually in and out very quickly in around 10-15 minutes.
Now lets say you place a trade, entry after candle close, from a level of support or resistance, test/re-test, pullback, breakout etc.
Main priority is to establish the risk which I either make tight which is dependent on the trading environment (Trending) or if I'm going to hold the trade for a long time then SL below previous low. Followed by how much profit to take. Let's say the market is likely to increase 200 pips, I personally would make sure my TP is is around 20 pips under.
Then, for joining the trade, I make sure almost every trade is made on either 1 hour chart or 15 minute, because pullbacks are more defined if you're able to establish the trend. I only use the 5 minute chart for re-entry if I've missed an opportunity.
If I entered at 1.20514, I would be in around 60 pips profit. The beginner idiot me would have left the trade and done something else.
It's important to establish if you're in profit, pips are like points that you score in a game. You play tactically and defensively to score as many points as possible, so if you place your SL at say 30 pips in profit, if the market turned on you, you'd close out in profit rather than a loss, in which case you'd now be running a risk free trade.
Obviously, as the pips stack up, naturally you'd increase your SL in profit as well.
So I hope this tip is helpful and improves your trading and limits your losses.
Have a blessed day!
It's ALWAYS ALWAYS ALWAYS IMPORTANT to place a Stop Loss and Take profit, for every trade you place, especially if you Day/intraday/Swing & Position trade. I don't often scalp and if I do I'm usually in and out very quickly in around 10-15 minutes.
Now lets say you place a trade, entry after candle close, from a level of support or resistance, test/re-test, pullback, breakout etc.
Main priority is to establish the risk which I either make tight which is dependent on the trading environment (Trending) or if I'm going to hold the trade for a long time then SL below previous low. Followed by how much profit to take. Let's say the market is likely to increase 200 pips, I personally would make sure my TP is is around 20 pips under.
Then, for joining the trade, I make sure almost every trade is made on either 1 hour chart or 15 minute, because pullbacks are more defined if you're able to establish the trend. I only use the 5 minute chart for re-entry if I've missed an opportunity.
If I entered at 1.20514, I would be in around 60 pips profit. The beginner idiot me would have left the trade and done something else.
It's important to establish if you're in profit, pips are like points that you score in a game. You play tactically and defensively to score as many points as possible, so if you place your SL at say 30 pips in profit, if the market turned on you, you'd close out in profit rather than a loss, in which case you'd now be running a risk free trade.
Obviously, as the pips stack up, naturally you'd increase your SL in profit as well.
So I hope this tip is helpful and improves your trading and limits your losses.
Have a blessed day!
Trade closed: target reached
This hypothetical trade hit 180 pips profit!
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