risk mgt and trader pyschology
Hello again Stallion.
Well I was in at 2.00796 but chickened out at 2.00973. I do that a lot.
How do you manage stops and profit targets? Do you close half the position at the 1st profit target and move the stop to break even?
Thanks again.
''If you miss out on those big moves that often
happen overnight when you're sleeping . . .
It's not your fault.
If you have family, friends, or hobbies, etc,
which take time away from your trading activities . . .
It's not your fault.
If you find yourself getting out of the market too
early because of fear or too late because of greed . . .
It's not your fault.
If you haven't found a trading system that works
for you . . .
It's not your fault.
If you find it challenging to actually "pull the
trigger" and execute an order when you find a
trading opportunity because you keep second
guessing yourself . . .
You guessed it. It's not your fault.
It just means you're normal!
Welcome to the club.
Seriously, who has the time, money, energy and
psychological makeup to endure staring at charts
with bloodshot eyes for 12 hours a day?'':clap:
Not a multitude, I guess. See, richy, its more about risk mgt and trader's pyschology than a good trading strategy.
Depending on your equity, protective stops are put 35 to 40 pips, below the initial entry point.
Closing half or a 'third' of the position at the first profit target, then moving your stops to breakeven at the initial price is like standard procedure in risk mgt.
A trailing stop of 20 to 30 pips(depending on your risk tolerance), without a profit target , is also okay, since you would likely go the maximum distance wen price is on a rip,minus 20 to 30 pips, during retracements.
For instance, price on the gbpusd might show up a BULLISH GAP when the market opens this Sunday, and we should be seeing price reach up from 1.9944 to 2.0015.
Remember, there's no 100% perfection in the markets, neither is there a ''HOLY GRAIL''.That is where risk/money mgt comes in,mon ami.:idea: