Ok.. so I've recenly found some consistency with my trading, just trying to tweak the money management to milk the trades as much as possible.
I'm successful trading for 30,40 pips a pop intraday.. but trying to add a bit of swing trading to my current daytrading routine.
So for example..
I open 2 lots at market. Stop 30 pips below(or 50,60,whatever).
I close 1 lot at 30pips profit, move stop on the other lot to break
even, and shoot for the starss.
Sounds beautiful on paper.
But what happens if price takes out my break-even stop more often than running higher.. i'd effectively be taking an average profit of 30pips at 1 lot, while taking an average loss of 30pips at 2 lots. I realize the numbers will vary.. but its conceivable that this would lead to greater losses than gains, as I remember it happening in demo a while back when i tried this. Yet many people much more successful than I am manage to "cut the losers short and let the winners run" successfully. How would I do this properly?
Thanks!
I'm successful trading for 30,40 pips a pop intraday.. but trying to add a bit of swing trading to my current daytrading routine.
So for example..
I open 2 lots at market. Stop 30 pips below(or 50,60,whatever).
I close 1 lot at 30pips profit, move stop on the other lot to break
even, and shoot for the starss.
Sounds beautiful on paper.
But what happens if price takes out my break-even stop more often than running higher.. i'd effectively be taking an average profit of 30pips at 1 lot, while taking an average loss of 30pips at 2 lots. I realize the numbers will vary.. but its conceivable that this would lead to greater losses than gains, as I remember it happening in demo a while back when i tried this. Yet many people much more successful than I am manage to "cut the losers short and let the winners run" successfully. How would I do this properly?
Thanks!
- nick andre -