stress free trading...

[pilibergado]

There is two significant camps of trading style. Those that use stops and the ones who don't.

There's very good reason NOT to use stop orders, since it is a frequent trading tatic of significant cash, to take your stop order, for their own profit. BIG cash are are gamers who's money really moves the market.

The most frequent egy is to use a plogical stop, which operates well, if you're there watching the market and disciplined enough to follow you egy. Many do not. However, of course, being glued to monitor day and night, is a rigid weight.

While you may not use them, whether you use stop orders to guard your new position against loss, or as a means of protect your existing profits, it is a vital egy to have in your arsenal. ESPECIALLY in the event that you want to have the ability to leave the track, or sleep nights.

If you have never done this until USE your demo account to experimentation. When you place a transaction, you have the option of also placing a stop and limit order. Furthermore, if you put in a trade with a market order, you ALWAYS have the option of adding these contingency stop and limit orders, later.

The nice thing about connecting the stop and limit orders to your position, is that if any one is struck, then the other is canceled. ALSO if you shut that place with a market order, then the stop and limit orders linked to that place are automatically canceled. Nice. Huh?

Lets use 20 pips as an example. You enter the market and have a position. You link a 20 pip stop loss and a 20 pip limit order for your position. Once this is done, you can walk off. Either one of the two things can occur, depending on how the market moves. Either you're going to make 20 pips or you're likely to loose 20 pips.

Of course that's just a hypothetical case. However, you get the idea. When you begin trading like this, or at least learning to exchange this manner as a workout, you're pushing yourself, to seek out the cheapest risk entry points, which is ALWAYS a fantastic thing to do.

The large upside to learning how to exchange this way, is you're become MUCH less likely to make gut decision based of the feelings of and greed.

[Oxnoliguti]

Thank you for the suggestion. I am new and have been experimenting with placing an OCO right after a purchase (at a practice account).

My query is if the high liquidity of the forex market essentially prevents any huge moves down or up that could leave me dozens of pips away from my target exit price? (In the stock market, you might get stopped out but in a much lower price due to sudden motions or illiquidity. Is a problem with FX? If so, how big a problem is it?)

Thanks.

[darky92]

1. Find profitable price patterns/setups and invent entry/exit principles to exploit them (for me personally, that is the toughest part). Be as selective as is needed. 2. Keep testing until you are convinced that your egy is long-term (statistically) profitable. Confidence in your method is crucial. 3. Either commerce in demo, or perform only with money that you could afford to lose. 4. Determine maximum allowable risk before you enter every trade. Size positions consistently, and small enough so that losses are equally financially and emotionally inconsequential.... Worth a bump up, the material is just as relevant today as it was 5 years ago

Thanks to David

[Remolinero07]

'And so the dove fell from the Skies'

[niko]

The key to stress free trading is the correct use of cash management and more time frames.

[LuisYoGoLo]

Stops is similar to seatbelt. You don't think that it's helpful until you get into a BIG ACCIDENT. That mishap can be anything from extreme market crash, a broker platform freeze. Then you would really wish you had put on the seatbelt...

It just takes ONE bad accident

[Anaapple]

Where is your stress free part of the again?


...

[niko]

Where's the stress free part of the again?

[Angogar]

A. Dont trade
or
B. Trade with .01 a pip movement. If your incorrect by 100 pips, based upon the pair it's only cost ya around $1 U.S. Dollar.

[lgox1963]

A. Dont Exchange
or
B. Trade with .01 a pip movement. If your wrong by 100 pips, based on the pair it's only cost ya about $1 U.S. Dollar. You forgot to say C. Trade at Demo:

If you really need to free some strain have a cup of tea and squeeze out a sponge ball. Concerning the stop loss I like the analogy of , you never anticipate sh*t happening, until it happens...

[Tataylo]

1. Find profitable price patterns/setups and devise entry/exit principles to exploit them (for me, that is the most difficult part). Be selective as is needed.

2. Keep testing until you're convinced that your egy is long-term (statistically) profitable. Confidence on your method is imperative.

3. Either commerce in demo, or perform just with money that you can afford to drop.

4. Determine maximum allowable risk before you input each trade. Size places consistently, and little enough so that losses are equally financially and emotionally emptied.

5. If watching price spooks you, simply set your exit parameters (targets( stops, etc) then walk away from the computer.

6. Avoid trading when you're feeling tired, anxious or unwell; or are not able to keep loyal, quality attention, for whatever reason.

David

[Srta.navarro__]

The key to stress free trading is the correct use of money management and more time frames. I truly agree with you. However, as a beginner, when I ask a specialist to advise me on the best timeframe to use, they say that the one that I find most suitable.
I read some books that suggest having 15 minute time period. But in a thread, I was referred to group.com, and it advised beginners to only utilize daily and weekly timeframes.

Utilizing shorter timeframes has cost me to get rid of money. Also, I dropped huge pips weekly by not placing prevent loss, when a fundamental news was broken. This has really taught me a big lesson.

[Sandrasanzm]

My basic belief on Currency Market trading is that watching the market all the time won't force price to maneuver on my side so that's clearly a waste of time

what I've been doing is trading based on historic backtest and proceed forward with a established risk reward ratio per commerce and I know for certain I will make profit when I sleep

[Bio318]

Stops is like seatbelt. You don't think it's useful until you get to a BIG ACCIDENT. That accident can be anything from extreme market crash, a broker platform freeze. Then you would really wish you'd placed on the seatbelt...

It just takes ONE bad injury Yep. I'd never trade without stops. Would rather get accidentally stop-hunted through bad positioning of stops have an account wiped out through bad discipline.

The enemy is inside.

[Remolinero07]

As a total rookie I see merit in S/L's but can somebody please explain the advantages of a Target
Certainly we're all in it for one reason only.... MAKE MONEY.
You cannot make money by stopping a good run. . Let it operate.... Perhaps with a trailing S/L
.... But a goal. . I really don't know?

[K]

Reasons to get a goal may be that you just don't have the time to track the market always sufficient to depart based on price structure. So a goal might be an S/R place or something in coincidence using a fashion line. I WILL say that an arbitrary target based on a range of pips or dollar amount is pretty ludicrous. Same goes with STOPS.

[okroxxu]

I really like David's approach to approaching the market together with the consideration of this big money. I had a huge problem with hard stops, when I started trading. Typically, my analysis of this market was for the most part correct, but the time of my entries was so awful. Getting stopped out and then seeing the market move in the way you've thought it would is not an enjoyable feeling. I really do have a few alternatives to offer for those interested that work equally well (if not a tiny bit better).

1. If you're beyond the certain brokers: Dollar. Hedging functions as a fantastic choice to stop loss if done properly and has the added advantage of perhaps turning a loss into two wins. Of course, I'm making the assumption that the trader has a rational explanation for holding onto a losing position.

2. Utilize order direction EAs. Steve Hopwood introduced a superb EA a while back that lets you set a concealed stop that brokers can't see. Basically, it's the same thing as a plogical stop, but the EA does the implementation for you. It includes the added bonus of a security stop, and it is a hard stop if the EA fails for whatever reason. I have never actually traded with a plogical stop, but if it is your cup of tea, Here Is a link to the thread:
https://www.cliqforex.com/general-forex-discussion/2805-putting-business-plan-linda-raschke.html

Greatest,
ForexZen

[pikar0]

The proposed solution doesn't fix the issue of sleeping

Nevertheless you mention in the beginning of the post that you don't urge traders to utilize input their stops on the platform encourage them to use mental stops. . .However, in your example, you're stating clearly to utilize a stop loion it along with the limit order. . .So where is your remedy to the issue of the plogical stop how to protect ones' capital??


Thanks,

Nader