Why would I accept a break even trade? I have gained nothing. It will tell you things that will be missed on a candle chart.
Even more importantly, can you deal with the emotions of forex trading? Mastering the emotions of trading is more difficult than mastering the technical skills. This leads them to stay in a good trade too long, hoping to get more money out of it. This can lead to disaster — the trade can move against them and they get creamed.
This happens all the time, and it still happens to me from time to time. But how do you overcome greed when trading? A lot of traders flush some pips down the toilet and then want to strike back. So they double their last order and go for broke. And it does not make you any richer.
The impulse to get revenge is natural, and I still deal with this emotion often. Do not underestimate this emotion. Many traders have not only reached into the toilet of revenge, but have dived into it head-first. The market is so much more powerful than you are. Trading when angry or vengeful will be a total disaster. If you take a big loss, then stop, take a deep breath, and talk to a mentor or your mirror, or your favorite stuffed animal.
Chew on your toe if you have to. Even if you think you see the best opportunity in the world after you get blasted — make sure you take a long deep breath and pause before you do anything. Instead, I set up good trades, that have a lot of potential, and then I shoot for 10 pips as an initial target. I am not promising that you can do that. I am saying that it is possible and I have taught traders who have done it.
Why is this innovative, different, or revolutionary? Advanced traders want big money. They want big, big returns. They go for 40, 50, pips at a minimum. Jimmy Young, an accomplished currency trader and a friend of mine, only trades a few times per month and goes for pips or more every time.
I also teach and take these types of trades myself. What if it goes to pips? You should find ways to trade so that your average gain is larger than 10 pips — and at least the same size as your average loss, or better.
Let me repeat that: I am never displeased with 10 pips of profit. I set a stop at 1. When the price that I can sell at reaches 1. I can either exit the trade with my profit, or stay in the trade longer. Here is how I stay in the trade: I move my stop to break even.
If my initial stop was 20 pips or, on this trade, at 1. That means that if the price falls back to 1. I have gained nothing. I have traded defensively. But if the trade goes to 1. Many traders ask me why I would do something like that. Why would I accept a break even trade? My answer is a question: Out of 10 trades, would you accept 5 break even trades, 2 losers of 20 pips, and 2 winners of 50 each?
You have to cut your losses short. Get out of the losers fast. Make sure you stay in the winners longer. How do you know when to just get out with 10 pips? I say, get out with 10 pips any time you want.
How can you make money if your stop loss is at 20 or 30 pips and your gain is only 10 pips? This is not going to be your only trading strategy. This is one part of your trading toolbox. Remember that you are going to move your stop to break even sometimes and go for more than just 10 pips.
They have made a lot of money going for small gains. Can you do this? Can you do this today? Buy and sell on breakouts of support and resistance. Or, sell when a currency pair hits resistance and buy when it hits support. I teach this in the 1 on 1 training, and this is my major trading strategy. Always have a stop loss in place. Always obey your stop losses. You can set your stop to break even on 10 pips of profit, and then go for more. I can trade for a set number of hours per day, meaning I can have the trading platforms open and sit at my computer for a max of, say, 5 hours per day.
You must have a daily routine. Calculation of the Trade Entry Levels: His determining factor is the market price compared to the calculated Pivot Price at. It is virtually mathematically impossible for the. Market price at new day to be 41 pips or more above the calculated PivotPoint, so.
It is recommended that one master this. There are two methods of entering a trade by the D20p system. This is what is considered the basic, and. You may have different times, or slightly different numbers with your broker at the same time, so you have to allow a little variance. Mod will determine two things, and two things only: Mod deals ONLY with price at new day.
It is virtually mathematically impossible for the Market price at new day to be 41 pips or more above the calculated PivotPoint, so his signals will never be a PointB entry.
It is recommended that one master this system before moving on to the more advanced trades covered below.