DislikedBBO,
If you had just one bullet left;
1. What would you trade.
2. How would you determine how much to trade.
3. How would determine your risk.
4. How would you determine when to close position.
golferIgnored
(1) I have my own system and I would scan all the pairs I have set up on my watch list. I would then build up a shortlist of the the pairs that have triggered a setup. As I have one bullet I would have to choose one trade to invest in. I might now bring in other filters. For example I would choose long yen pairs if they are in the shortlist as I will be trading in the direction of preference of the major central banks in the world. Why swim against the tide?
(2) I want to trade in such a way that I will be able to trade if this trade doesnt work out. I would also want to trade in such a way that if the trade goes my way I would not regret laying on more stake inthe first place. One way of doing this is to trade depending on the confidence you have in the trade. More confidence - bigger lot size. Less confidence - smallet lot size. The other way is, which is my preferred way is to trade a fixed lot size. 2% risk has been bandied about. If 2% of my account is $1000 and I need a 100pip stop in a eurusd trade then I will trade 1 lot where 1 pip = $10. A lot of fixed risk lots means more oppotrunities to lose and still be able to trade
(3) As I am a chartist the charts will tell the story. I have to find a point where past that point the trade would be considered a loss. This would be a point behind resistance, support , a trendline, a candle pattern. The distance from my entry point to this point is the risk in pips. This also form the basis of calculating the trade size
(4) When to close the trade. This particular area used to be my problem as I took profits too quickly and let my losses ride. The opposite of what should be happening. Some set profit targets others use trailing stops. Profit targets are good because you get the satisfaction of an automatic trade. You also are able to capitalise on spikes in your favour. The problem is there is the possibility of leaving a lot on the table.
I would use a training stop and close out when the opossite of the reason why I entered the trade happens. For example, if I entered because of a MA cross then I will close out if the opposite cross happens. I would also bail out just before what I consider solid support or resistance
There is a lot to write but I hope I have done these questions the justice they deserve.
Olu
Find a trend and milk it for all it is worth. That's how to be profitable