Money Managemnet for Beginners

[RahmanSL]

I think this is a good place as can be to ask a “Newbie” question.

How do I set a “trailing stop”?

 

[cowmadagan]

It's an option provided only through some brokers. You can set the number of pips, and it basically allows your position to keep going up, but once it hits any high and then goes down by the number of pips you set without going above the high it 'stops' out. It's an automatic profit taker.

 

[Forexwatchman]

I do it manually through moving my S/L to lock in profits using either the 15 min or the 1hr charts. If the market is ranging, I act on the 15 min chart in order to be more conservative with my profit taking, but if the market is trending like it was doing two weeks ago, I am much more liberal and use the 1hr chart. This means you have to be able to constantly monitor your position and therefore won't work for everybody, but it's a very basic strategy and works better in my opinion than a static T/P.

 

[RahmanSL]

So it’s an option provided by some brokers. Hmmmm…no wonder I couldn’t find that anywhere in my Demo account.

I did set the SL manually today and got some nice practice results on gbp/usd pairs.

Oh yah, by the way my FXopen Demo account is wiped out by heavy losses and is down to just usd1.69 rendering that account un-tradable.

The other Demo with Tadawul has usd597.78 remaining, but which now is an ideal equity amount to practice on and to trade like a Live account.

Thanks guys!