DislikedPjp
Interesting what you are saying, I was just looking at cable and making TA on to it and I was thinking exactly the same that entry can be made on a smaller TF (15 or 60m).
But if we do that our entry need to be completely spot on, otherwise we are going to be stopped out of that 20 (about) pips SL. And I think is a good idea for short term only. Correct me if I am wrong.
The way I made 31 % from the 10th of this month was made like this:
First of all my technicality confirmed to me that this has bottomed, combined with fundamentals...Ignored
SO many ways to do this.
20 pip risk is pretty much on the button for the 15 min give or take. However , if you break it down to the 5min chart you can lower your risk to 5 or 10 pips, and yes, you will get stopped. But if you are chasing trend moves your stops are covered quickly, unless you have absolutley no viable trade method.
Last night I entered the EU long at 1.2353 and my stop was 7 pips. This trade was based on the daily chart. Watching the 1.2350 area, then down to 1hr, and entry was made on the 5min at the daily high breakout. It took about 3hrs from entry for momentum to kick in.
Risk is highest when you first enter the market. Management of this risk depends on your trade style and risk tolerance.
Eample only.
1 Lot trade position. entry at 1.2353 stop 7 pips = $70 plus spread .5 pip. Moves 20 pips take 20% profit so to BE. and you continue repating this higher.
Example only
2. Entry at 1.2353 = .1 lot risk $7. You then get confirmation of direction and you begin scaling in .4, more conformation add .2, add .3 so now we have one full lot. and as the trade moved in your direction you are build a bigger position and you risk remains the same or even decreases while you position size increases. How you scale in is up to you, but you must always be aware of your total market exposure.
I did the same thing selling the GBPNZD from 1.0924 all the way to 1.9000. Almost 2000 pips. I still hold 1.5 lots from that entry. and the total amount of lots in the market was 22 standards and my risk never went higher than when i first entered at 1.0924 with just one lot.
You need a good spreadsheet for this type of trade managemnt.
Risk in any fully loaded position is never more than 3%,
but shorting highs for an ABC correction tanking down to 1.20 wont be bad at all FOMC later