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DislikedWhat I am going to say is under the understanding that we are not talking about only going for 10 pips, and as I have been reading your threads, I am sure you are not.....
Let's take a fictional scenario:
Right now you see a triangle forming on the EUR/USD 4 hour chart. It then breaks to the upside. (You like this, because it's been in an uptrend for ages.)
You can either enter on the break, and at that point, hopefully you match you stop loss pip for pip. (Stop loss needed to be -20, and now you are at +20 right now.) It is at this point that I would suggest that maybe you take half off the table, and set your stop loss to either break even, or to a few pips under the breakout. (This way, you will be up overall, no matter what happens.)
One of three things can happen at this point.
1 - your stop loss gets taken out, and life goes on, because you just made money.
2 - It goes sideways. It is at this point, I would suggest taking another 25% off, just for kicks if nothing else. You aren't losing any money, but at least you are getting a large bang for your buck on this original 20 or so pips in case scenario #1 suddenly happens.
3- And this is my favorite. It keeps going. At this point, no matter what happened before....IT's A FREE TRADE. So, if you had sideways happen, and took another 25% in profit, I would just set a trailing stop and go away from the computer. However, if you are still 50% in, I would take 25% at next resistance point. The rest should be on a trailing stop, just in case it takes off and goes right through said resistance point.
Just my opinion. And I believe that is all I can do from my limited information, knowledge, insider information, etc.
Besides, even if trailing stop is hit later, who cares? still going to be up major pips no matter how you look at it.
example: 4 lots (or any multiple of 4)
Up 20 pips, take 2 off...... up 40 pips.
Up 60 pips, take 1 off...... you are now up 100 pips.
Trail stop gets taken out at +45..... you can live with 145 pips.