I don't know how to link a post therefore below is the C&P of a post made by the_wizard. Some good insights how to trade the market
QUOTE
I've got a good deal of experience with the "breakeven move" having seen it severely hinder performance in both my own account and others.
Infact one of the biggest and most successful professional traders I have ever worked with, who used to get sick of me ranting about "how I would still be in if I hadn't moved my stop to lock in profit" told me in plain English that I was a c*** for moving the stop to breakeven. (I'm not sure if he was that polite).
This is because almost every single time it makes absolutely no sense in the context of where the market is trading. If, for example, you take a trade at the top of a pin, you are entering in the middle of no-mans land after the market has moved away from support. The market knows about previous highs. It knows about previous lows. It knows about support. It knows about resistance. It knows about patterns. It does not know about where Johnny Green Fingers entered and has a risk free trade.
I give numerous examples in that thread of being well over 50 ticks up and then seeing the market come back to break even before making a huge move. Infact it is something that happens so often, James has actually covered it in a webinar and Seeking light actually coined a term to explain it!!!
The sad fact about the breakeven stop is that it means nothing when the market comes back and takes you out aside from the fact that you just got shaken out of what could (and usually is) a great trade because you were afraid to take a loser.
I think my biggest problem with break even is that it is common knowledge that one should trade the markets and not their P&L.
Using a break even stop in this strategy is trading your P&L in 99% of cases.
If you think it's going to turn and you are trading into a FTA get out!! But moving to break even smacks to me of relying on HOPE.
E.g. I HOPE it will go further but I don't want to take a loss if it doesn't.
And once again, hope is a killer in trading.
Anyway, I've said enough on the subject. Sorry if it's been a bit of a rant but honestly, this break even thing is the one issue that just keeps coming back in most of the people I speak with. People can see it destroys their performance but they just can't deal with not using it because it's comfortable and makes them feel safe.
Ultimately though, the proof is in the testing.
If you don't believe me on any of this, try it yourself.
UNQUOTE
QUOTE
I've got a good deal of experience with the "breakeven move" having seen it severely hinder performance in both my own account and others.
Infact one of the biggest and most successful professional traders I have ever worked with, who used to get sick of me ranting about "how I would still be in if I hadn't moved my stop to lock in profit" told me in plain English that I was a c*** for moving the stop to breakeven. (I'm not sure if he was that polite).
This is because almost every single time it makes absolutely no sense in the context of where the market is trading. If, for example, you take a trade at the top of a pin, you are entering in the middle of no-mans land after the market has moved away from support. The market knows about previous highs. It knows about previous lows. It knows about support. It knows about resistance. It knows about patterns. It does not know about where Johnny Green Fingers entered and has a risk free trade.
I give numerous examples in that thread of being well over 50 ticks up and then seeing the market come back to break even before making a huge move. Infact it is something that happens so often, James has actually covered it in a webinar and Seeking light actually coined a term to explain it!!!
The sad fact about the breakeven stop is that it means nothing when the market comes back and takes you out aside from the fact that you just got shaken out of what could (and usually is) a great trade because you were afraid to take a loser.
I think my biggest problem with break even is that it is common knowledge that one should trade the markets and not their P&L.
Using a break even stop in this strategy is trading your P&L in 99% of cases.
If you think it's going to turn and you are trading into a FTA get out!! But moving to break even smacks to me of relying on HOPE.
E.g. I HOPE it will go further but I don't want to take a loss if it doesn't.
And once again, hope is a killer in trading.
Anyway, I've said enough on the subject. Sorry if it's been a bit of a rant but honestly, this break even thing is the one issue that just keeps coming back in most of the people I speak with. People can see it destroys their performance but they just can't deal with not using it because it's comfortable and makes them feel safe.
Ultimately though, the proof is in the testing.
If you don't believe me on any of this, try it yourself.
UNQUOTE
Forex is boring but profitable with patience and discipline 
