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Chapter 32, Part II. Tracking Your Performance - Continued...Page 5

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 28, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    - The same is for stop-loss area. Has the market just fallen through it like a stone, respected it or even turned in your favor? How efficient was the placement of your stop-loss order.

    Pipruit: And what we can do to reduce the probability of such losses?​

    Commander in Pips:
    I think so, because if the market reverses in your stop-loss order area, then it tells that this area is not suitable for that. Here is a simple rule – place stop-loss at the level, so that if market will reach it, this means that the market 100% proceed against you. This level is the crash area of your context for trading.


    The opposite is true for your take profit order. If market has passed through it without any respect, it means that your order was placed too close. Still this is not always so – this should be watched within overall context. If you’ve planned this ahead of time and your risk/reward ratio is acceptable then there is no mistake with a closer profit target.

    Then you have to understand how you’ve behaved when trade was in progress:

    - Again – have you accomplished your trading plan at 100%?

    - Did you move your stop-loss to protect your profit as you’ve planned initially or allowed yourself some voluntary changes by gut feeling?

    - Did you take partial profit or scale your position without this being a planned of this procedure?

    - Did you do anything by your emotions (everything that was not in your trading plan)?

    - Did you take profit as planned or there was some emergency situation?
     
    #1 Sive Morten, Dec 28, 2013
    Lasted edited by : Oct 9, 2016
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