Hi All,
I have been trading for a bit over a month and I am really starting to get my own system hammered down, but I am having a little bit of an issue deciding how to set profit targets for my individual trades.
As an example: I am short in cable at the moment (from 1.8737), and I have a profit target set at a resonable level (1.8703)...I was a bit frustrated on friday as the price of cable dropped to 1.8705 before recovering to close at 1.8800, meaning I have now shifted from a nice profit to a loss.
I think (hope) that the dollar will continue to recover a bit tomorrow to bail me out but I would like to get a bit smarter about setting my profit targets.
My question is this:
Are profit targets simply subjective with regards to the type of trade you are expecting (i.e. choose to gain 30 pips/trade) or is there a more technical way of choosing the profit target? I have been trying to use Support/Resistance levels to set my targets, combined with the number of pips I would like to take out of the market for that specific trade, but I would like to devise a more solid method of setting my profit targets.
How do you guys go about doing this?
Kind Regards,
Mike
I have been trading for a bit over a month and I am really starting to get my own system hammered down, but I am having a little bit of an issue deciding how to set profit targets for my individual trades.
As an example: I am short in cable at the moment (from 1.8737), and I have a profit target set at a resonable level (1.8703)...I was a bit frustrated on friday as the price of cable dropped to 1.8705 before recovering to close at 1.8800, meaning I have now shifted from a nice profit to a loss.
I think (hope) that the dollar will continue to recover a bit tomorrow to bail me out but I would like to get a bit smarter about setting my profit targets.
My question is this:
Are profit targets simply subjective with regards to the type of trade you are expecting (i.e. choose to gain 30 pips/trade) or is there a more technical way of choosing the profit target? I have been trying to use Support/Resistance levels to set my targets, combined with the number of pips I would like to take out of the market for that specific trade, but I would like to devise a more solid method of setting my profit targets.
How do you guys go about doing this?
Kind Regards,
Mike