I am v new to forex and still trying to figure out what's a stop, trailing blah blah.. Its is not exactly a system. Just a approach which I though would be good in trending market. Feel free to comment.
1. Look at the daily chart
2. Look at the trend, check your MACD, RSI or other indicators which u always use and latest news updates. Do your home work.
3. Open your position. ( decide on your stop loss)
4. Wait till the market moves to 20 pips in favour of your opening price.
5. Place a stop loss 15 pips behind the price of step 4.
6. If the market moves in your favor any another 20, pips, increase your stop loss by
another 5 pips.
Keep repeating step 4- 6 until stop loss is hit.
I like the use of Stop loss in this mtd cos even when I hit SL, it is still a profitable trade.
However Downside is that I need to monitor the charts consistently to adjust my SL lvl and it seems to work only on trending market.
If you have suggestion how to adapt this on ranging market.. I look forward to ur suggestion.
I tried one position on GBPUSD. on Christmas eve in my demo account. My colleage was asking me about the sterling pound situation feel that its good time to go in as the drop is only temp and some economic POV.
So it was a doji on the daily chart on 24th Dec... and
I open long @ 1.9885, tried adjust SL lvl as mention above till its hit @ 1.9985 on 26 Dec07.
Did a couple of trade for the next 2 days.
If you have suggestion on how to improve this mtd.. feel free to comment.
Current position...
Long at GBPUSD 2.0053
Current price as I am typing now 2.0095
My stop loss is 2.0063
Let's see how many day I can keep this position. =D
Cheers.
1. Look at the daily chart
2. Look at the trend, check your MACD, RSI or other indicators which u always use and latest news updates. Do your home work.
3. Open your position. ( decide on your stop loss)
4. Wait till the market moves to 20 pips in favour of your opening price.
5. Place a stop loss 15 pips behind the price of step 4.
6. If the market moves in your favor any another 20, pips, increase your stop loss by
another 5 pips.
Keep repeating step 4- 6 until stop loss is hit.
I like the use of Stop loss in this mtd cos even when I hit SL, it is still a profitable trade.
However Downside is that I need to monitor the charts consistently to adjust my SL lvl and it seems to work only on trending market.
If you have suggestion how to adapt this on ranging market.. I look forward to ur suggestion.
I tried one position on GBPUSD. on Christmas eve in my demo account. My colleage was asking me about the sterling pound situation feel that its good time to go in as the drop is only temp and some economic POV.
So it was a doji on the daily chart on 24th Dec... and
I open long @ 1.9885, tried adjust SL lvl as mention above till its hit @ 1.9985 on 26 Dec07.
Did a couple of trade for the next 2 days.
If you have suggestion on how to improve this mtd.. feel free to comment.
Current position...
Long at GBPUSD 2.0053
Current price as I am typing now 2.0095
My stop loss is 2.0063
Let's see how many day I can keep this position. =D
Cheers.
