For example in my personal experience I have found that stop losses of any point size are detrimental to my trading performance, so I only use them to protect my account against catastrophic ruin; not as a trading tool.
By this you can safely assume that I generally take profits at smaller intervals than when a stop loss is hit. This may go against popular wisdom, but it works for me — and that is all that is important. Somehow you have to get to the same place — ie find out what works for you.
My previous post was no more than an example that said the pure mathematical odds of success improve as you increase your targets.
It was not advocating a 1: Try some different relationships for yourself — 7: However, I can almost guarantee that if you use tight stops you will lose, because the spread as explained above, and no matter how small will get you. I have lived and breathed trading ever since trading fx professionally in London, Toronto and Philadelphia in the early 70's yes I know that shows my age!
While my professional career subsequently took me from the trading desk to designing treasury systems for some of the world's leading financial institutions, my desire was to always trade for myself. As a consequence, following 5 years with a major international stock-broker the last 3 as CIO I finally went self-employed in March , trading my own account.
This is a continuing step in that process. Everyone has had a day where they were following their well planned system, and then they walked away from the. Trading the foreign currency markets takes a fair amount of time no matter what system you use. There are times when you start rubbing your hands together and stare at the computer screen with a sinister look. Getting started in forex will, put plain and simply, make your head spin.
There is alot of garbage out there,. Tuesday 05 Dec Home About us Advertising Feedback. I'm sure there are times when all of us look at a chart during a trade and think, 'I really. Popular Recent Comments Tags. Risk WarningSite visitors hereby acknowledge that: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.More...