DislikedNot sure i want to do this .... LOL
I have spent a lot of time posting charts and trying to help others trade that maybe I am not focusing on me enough , So I think moving forward i will try to analysis every trade . after the fact and put in writing the best i can of my thoughts and what i see as what i did right or wrong. not sure i can post it all but at least i will be seeing my issues in black and white .Ignored
Let's set up this scenario:
SL: -20pips
TP1: +40pips
TP2: +60pips
The dilemma I have at TP1, and the reason why I'm hesitant to set the trade to BE and let it run to TP2, is the following:
On the way to TP1 we are risking 20pips to win 40pips, 2:1 R:R. However, once we have reached TP1 and set stop to BE we effectively are risking 40pips (the distance to BE) in order to win 20pips, thus we have a risk reward of 1:2. How can I justify such a R:R?
Of course we can also take a partial profit at TP1 (let's say we take 50% off the trade), but the dilemma remains... unless I set TP2 at let's say 80pips, then I have a 1:1 R:R... but this would still have to be in accord with a S/D level that I choose to target... but if I don't see a realistic S/D level at that distance, why should I bother risking so much for so little reward?