DislikedI suppose it is working out how much heat we are prepared to accept before making the trade. It must be a fine line between taking heat and watching a profit turn into a loss.
Any tips for this DD?Ignored
1) If trading EJ or GJ (as you know, those pairs are schizophrenic), once I am +20 or +30, I move my stop to BE even if my TP1 is +70.
2) For all other pairs, once I am in a trade, I do something else. I do not watch the screen. I read. I post here in Sonic's thread. I play with my kids. I do anything but look at the screen. I just listen for the sound that tells me one of my orders has been filled. Once I hear that sound, I check to see whether it was my SL or my TP1:
a) If it was my stop loss, I make sure to cancel my TPs.
b) If it was TP1, I move my SL to BE.
c) After TP1 is hit, I do watch from time to time to see if price gets to within a pip or two of my TP2 and reverses. Sometimes, that happens. I will then manually TP.
Have you read Reminiscences of a Stock Operator? It is a must read for any trader. The quote in Sonic's signature comes from that book:
“There is only one side of the market and it is not the bull side or the bear side, but the right side.”
My favorite quote from that book is this from pp68-9:
"It was never my thinking that that made the big money for me. It always was my sitting. Got that? My sitting tight! ... That is why so many men in Wall Street ... lose money ... The market does not beat them. They beat themselves because though they have brains they cannot sit tight."
Good Stuff - Read it!
