Hi Werner,
Just speaking from experience i often took profit on the time frame under the time frame i entered on. For example, if i entered a pin bar on the dailies i would tend to go down to the 4hr and let the price action scare me out of a good position.I think always exiting on the same time frame you entered on is a good idea.I now use this method.
I hate to tell you this Werner but unfortunately you WILL go broke taking +23pips.
You would know that your stop loss on this trade was 122pips. Now just as an example if you got stopped out on this trade and lost 122pips you would need on your next trade 122 pips profit just to break even, how can you do that when you take 23pips?You would need 5 winners of 23pips just to break even.Doable, but difficult nonetheless.The whole point is that your winners($'s)exceed your losers($'s)(i like to think that i will make at best 50% winning trades and therefore make sure i let my profitable trades run).If you make a habit of cutting your winners short then you will likely feel the pressure as your trades get stopped for losses when you strategy comes under the hammer.
LET YOUR WINNERS RUN AND CUT YOUR LOSERS SHORT.
Following the plan with the R:R that you had would have been acceptable, but as you realise you have failed to follow that plan and in reality altered R:R.My question is this:
If you are going to calculate R:R and not obey that, why bother calculating the damn thing in the first place?
Don't feel bad, when i first started trading i did the same thing.Now though i set up the trade with stops and targets and let the market play out.Most times if i am realistic and do my analysis correctly the market moves to the areas i identified prior to entering.Sometimes i just set stops and make adjustments daily to account for price action that tells me the price may go against my current position.For example if i am trading a daily bullish pin on the gbpusd and a week later it makes a bearish pin or a BEOVB then i would look to take profit on current price action.
There are many ways to take profit and each to his own.These are just some of the things that work for me.
I hope i have made things clear and have been a help.
Cheers
Steve.
Just speaking from experience i often took profit on the time frame under the time frame i entered on. For example, if i entered a pin bar on the dailies i would tend to go down to the 4hr and let the price action scare me out of a good position.I think always exiting on the same time frame you entered on is a good idea.I now use this method.
QuoteDislikedBut at least I won't go broke taking +23.
You would know that your stop loss on this trade was 122pips. Now just as an example if you got stopped out on this trade and lost 122pips you would need on your next trade 122 pips profit just to break even, how can you do that when you take 23pips?You would need 5 winners of 23pips just to break even.Doable, but difficult nonetheless.The whole point is that your winners($'s)exceed your losers($'s)(i like to think that i will make at best 50% winning trades and therefore make sure i let my profitable trades run).If you make a habit of cutting your winners short then you will likely feel the pressure as your trades get stopped for losses when you strategy comes under the hammer.
LET YOUR WINNERS RUN AND CUT YOUR LOSERS SHORT.
Following the plan with the R:R that you had would have been acceptable, but as you realise you have failed to follow that plan and in reality altered R:R.My question is this:
If you are going to calculate R:R and not obey that, why bother calculating the damn thing in the first place?
Don't feel bad, when i first started trading i did the same thing.Now though i set up the trade with stops and targets and let the market play out.Most times if i am realistic and do my analysis correctly the market moves to the areas i identified prior to entering.Sometimes i just set stops and make adjustments daily to account for price action that tells me the price may go against my current position.For example if i am trading a daily bullish pin on the gbpusd and a week later it makes a bearish pin or a BEOVB then i would look to take profit on current price action.
There are many ways to take profit and each to his own.These are just some of the things that work for me.
I hope i have made things clear and have been a help.
Cheers
Steve.
... to another TP (ppz)
:-)