good morning, afternoon boss. can anyone help me where to put buy limit, either 3226, 3206 or 3110. 
- #615,101
- Mar 25, 2012 11:52pm Mar 25, 2012 11:52pm
- | Membership Revoked | Joined Aug 2011 | 1,123 Posts
- #615,103
- Mar 25, 2012 11:59pm Mar 25, 2012 11:59pm
- Joined Sep 2011 | Status: Minor crosses. Major pips. | 3,701 Posts
good morning, afternoon boss. can anyone help me where to put buy limit, either 3226, 3206 or 3110.
Time turns trend. - W.D. Gann
- #615,106
- Mar 26, 2012 12:19am Mar 26, 2012 12:19am
- | Membership Revoked | Joined Aug 2011 | 1,123 Posts
ok thank u all, I will see all your suggestions. 
- #615,108
- Mar 26, 2012 12:43am Mar 26, 2012 12:43am
- Joined Jul 2007 | Status: Short on USD/MXN, Long on legs | 16,578 Posts
New voice message: Why are you calling me? If I need you, I'll call you!
- #615,110
- Mar 26, 2012 12:47am Mar 26, 2012 12:47am
- Joined Jan 2011 | Status: Ordinary Members | 10,684 Posts
Everything okay? Lol Maybe you should take a break from FX?
edit : i am out
Mohan
- #615,114
- Mar 26, 2012 12:53am Mar 26, 2012 12:53am
- Joined Aug 2009 | Status: Trader | 12,448 Posts
not necessarily .. I can put in trades with 10 pip stops targeting 1000 pips all day long, but it does not mean much. When you put in a smaller tp, you have to consider the probability of hitting a target. now lets put it this way. lets say we are at 3.30 and probability of going to 3.0 is 80% and probability of going to 4 is 20% .. when you consider that, he is getting a deal . to complete this, he could consider 4 as his point where the trade is invalidated and the sell at 3.3 is valid, as the expected value is 3.2. you dont make money by not...
wow
I didnt really rubbish his rr, and suggesting risking 10 pip for 1000 pip reward, I certainly not suggesting.
Dust bin trading is a very fine art, and if he has mastered and doing, good on him.
My suggestion was more concern r/r, this is key componant of every trade plan, yes different trade style require different r/r calculations.
Risking more than projected reward is dangerous game, a, I would normally question anyone who declare they have 80% success of trades, but I didnt, I congratulate him, personally I know this level of success is very difficult.
However if you do calculations of rr 3/2 even 80% successs is not that great.
rr 1/4 would allow 75% failure and 25% success to break even, less spread slippage etc
anyway, like I say, I not dish him, I wish much success, but anyone other than expert dustbin trader, who use negative r/r will fail in long run.
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