Reply To: When to exit?
I have been following many of your posts, they do tackle many of the questions I believe many of us have
At the moment I have issues getting into trades, as soon as I identify a market and possible opportunities I wait for the trigger.
As soon as a trigger appears, usually an engulfing candle i open a trade, however this is the first stumbling block, by the time I enter the trade at 1 pip below/above the previous engulfing candle the price has moved, usually considerably.
I then look for a new entry price taking into account the particular spread for that currency, this ranges between 15 pips and 500 pips. How do you factor this in to your entry price?
What I’m saying is that by the time I identify a good trade opportunity and enter the trade most of the gain has already been taken up, this means that my entry price usually lands on a support position.
With regards to taking profit I am sticking to a 10~1 strategy, if I place 10p per pip the happy to take a £1, £1 per pip then take £10. Hopefully this will limit losses and build up bank balance as well as taking away the “How to Exit” issue. I’m sure as time goes by I will start to look at all exit strategies in more detail.
Don’t stress over the way the market moves, after all it is the randomness that gives opportunities, turns losers into winners and winners into losers. I relate tis to playing poker, you can do nothing about the cards that are dealt, many times you are winning on the flop but loosing on the river, the cards dealt are always random, all you can do is limit loses and maximise winnings.
I have also noticed that on you example you are trading against the MOR – DOR bias, any particular reason for this?