ideal scenario
we get in a trade on a lower timeframe e.g. m1 or m5, and we immediately put our stop loss near the swing point 15-16 pips or so to account for spread. We also set a profit target of 20 pips, a risk reward of better than 1:1. The trade starts to move in the direction we want, but we have no way of knowing how far it will go. Eventually we move the stop loss to break even minus two. So far, we can't lose much money on this trade.
Are exits just guesswork? Some trends are 40 pips, some are 10-15 pips or so. We want the ability to get the bigger winner. Having multiple entries won't be good as it will just increase our risk as it exposes us to many stop loss. Trailing stops wont work all the time, as markets don't always trend smooth..Trailing stops only work in smoothly trending markets ,not choppy market.
Should we just sacrifice the small winner(i.e. these will be break even) in order to get the bigger winners 20 pip plus?
Exits look totally guesswork, and its impossible to guess where the trend will end, as the market is unpredictable.
Should we just do 2 1/2 lot entries instead, to keep our risk level same whilst also allowing 1/2 exits?
i think that is the only solution to this dilemma, as no one wants to lose out on trends that last longer..
we get in a trade on a lower timeframe e.g. m1 or m5, and we immediately put our stop loss near the swing point 15-16 pips or so to account for spread. We also set a profit target of 20 pips, a risk reward of better than 1:1. The trade starts to move in the direction we want, but we have no way of knowing how far it will go. Eventually we move the stop loss to break even minus two. So far, we can't lose much money on this trade.
Are exits just guesswork? Some trends are 40 pips, some are 10-15 pips or so. We want the ability to get the bigger winner. Having multiple entries won't be good as it will just increase our risk as it exposes us to many stop loss. Trailing stops wont work all the time, as markets don't always trend smooth..Trailing stops only work in smoothly trending markets ,not choppy market.
Should we just sacrifice the small winner(i.e. these will be break even) in order to get the bigger winners 20 pip plus?
Exits look totally guesswork, and its impossible to guess where the trend will end, as the market is unpredictable.
Should we just do 2 1/2 lot entries instead, to keep our risk level same whilst also allowing 1/2 exits?
i think that is the only solution to this dilemma, as no one wants to lose out on trends that last longer..