Okay.
For this example lets say that your main TP goal is 10 pips and your SL's are all set at 10.
Enter the trade with three positions of equal size.
1st position - take profit at +3 or 4 pips
2nd position - take profit at +10 pips
3rd position - once 2nd position takes profit at +10, move the stop loss for the 3rd position to break even. Set your take profit just before a recent swing high or low, support or resistance, or pivot level. Then ENJOY YOUR FREE TRADE!
The reason this is so effective is that few trades immediately reverse to stop you out. Most losing trades venture at least part way into profitable territory before reversing. Using this method, a loss would net you -17 pips as opposed to -30 pips. That's a big difference in the way your losses affect your equity overall.
Quote:
Originally Posted by DarkDays http://www.forexfactory.com/images/buttons/viewpost.gif
Would it be out of line to discuss a money managment technique that has helped me using this method?
For this example lets say that your main TP goal is 10 pips and your SL's are all set at 10.
Enter the trade with three positions of equal size.
1st position - take profit at +3 or 4 pips
2nd position - take profit at +10 pips
3rd position - once 2nd position takes profit at +10, move the stop loss for the 3rd position to break even. Set your take profit just before a recent swing high or low, support or resistance, or pivot level. Then ENJOY YOUR FREE TRADE!
The reason this is so effective is that few trades immediately reverse to stop you out. Most losing trades venture at least part way into profitable territory before reversing. Using this method, a loss would net you -17 pips as opposed to -30 pips. That's a big difference in the way your losses affect your equity overall.
Quote:
Originally Posted by DarkDays http://www.forexfactory.com/images/buttons/viewpost.gif
Would it be out of line to discuss a money managment technique that has helped me using this method?