Interesting (withdraw) your profits
Don't be tempted to keep raising posisition size or lot size, we recommend you draw a profit you've earned every month (if any). Professional traders who live off the market always attract a portion of their funds each month in order to keep his trading account balance is relatively fixed. They also do not enlarge risks when profit.
By maintaining the balance of the account on the equilibrium value, i.e. the amount of fitting and most comfortable to perform transactions, then you should not double the risk. Keep work appropriate trading plan that has been tested and You agree upon. But conversely, if the value of equilibrium You shrink, then you should add to your deposit, or rearrange your trading plan follows the maximum that you can risk the responsibility so that retrieved the value of the new equilibrium.
Don't rush shifts the level of stop loss to breakeven
Move stop loss to a level equal to the level of entry indeed less plausible unless there is a logical reason to be accepted. Have you ever encountered a stop loss, after having slid as low as taxable, the breakeven price movements reversed according to your original estimate? If so, it is because You lack to give space on the market. Usually occurs due to emotional or fear of loss. You can move the stop loss to breakeven level if it allows such price movements:
The price movement that suggests the change of direction of the trend.
If this happens it is logical when you shift the stop loss to breakeven level, or when the isyaratnya is strong enough You can move it closer to the market price.
Price movements are approaching key resistance level or support.
If this happens the price likely will test the key level, could turn direction (bounching) or break. If by chance Your stop loss is potentially a big hit, you could move it to breakeven as safety measures.
Ahead of the release of key fundamental data high-impact.
You certainly could not anticipate the direction of price movement while the news releases even if you do not intend to trade by news. Given the high volatilitasnya, if you have an open position, in order to be secure should move the stop loss level to breakeven.
You have to have a position open for a few days, but the market tends to be very slow moving or not.You can consider to get out of the market or if it is possible to move stop loss to breakeven level.
Do not specify the target level is too high
Target profit should you specify from the beginning according to the risk/reward ratio, however, should be not too high even though You see the opportunities for it. You could try with the initial value of the risk/reward ratio of 1: 1.5 (greater than 1), later raised to 1: 2 and so on. It needs to be done considering the price movements are difficult to predict.
Don't be tempted to keep raising posisition size or lot size, we recommend you draw a profit you've earned every month (if any). Professional traders who live off the market always attract a portion of their funds each month in order to keep his trading account balance is relatively fixed. They also do not enlarge risks when profit.
By maintaining the balance of the account on the equilibrium value, i.e. the amount of fitting and most comfortable to perform transactions, then you should not double the risk. Keep work appropriate trading plan that has been tested and You agree upon. But conversely, if the value of equilibrium You shrink, then you should add to your deposit, or rearrange your trading plan follows the maximum that you can risk the responsibility so that retrieved the value of the new equilibrium.
Don't rush shifts the level of stop loss to breakeven
Move stop loss to a level equal to the level of entry indeed less plausible unless there is a logical reason to be accepted. Have you ever encountered a stop loss, after having slid as low as taxable, the breakeven price movements reversed according to your original estimate? If so, it is because You lack to give space on the market. Usually occurs due to emotional or fear of loss. You can move the stop loss to breakeven level if it allows such price movements:
The price movement that suggests the change of direction of the trend.
If this happens it is logical when you shift the stop loss to breakeven level, or when the isyaratnya is strong enough You can move it closer to the market price.
Price movements are approaching key resistance level or support.
If this happens the price likely will test the key level, could turn direction (bounching) or break. If by chance Your stop loss is potentially a big hit, you could move it to breakeven as safety measures.
Ahead of the release of key fundamental data high-impact.
You certainly could not anticipate the direction of price movement while the news releases even if you do not intend to trade by news. Given the high volatilitasnya, if you have an open position, in order to be secure should move the stop loss level to breakeven.
You have to have a position open for a few days, but the market tends to be very slow moving or not.You can consider to get out of the market or if it is possible to move stop loss to breakeven level.
Do not specify the target level is too high
Target profit should you specify from the beginning according to the risk/reward ratio, however, should be not too high even though You see the opportunities for it. You could try with the initial value of the risk/reward ratio of 1: 1.5 (greater than 1), later raised to 1: 2 and so on. It needs to be done considering the price movements are difficult to predict.
Posted by Unknown on Monday, February 2, 2015 - Rating: 4.5
Title : Tips on using Money Management (2)
Description : Interesting (withdraw) your profits Don't be tempted to keep raising posisition size or lot size, we recommend you draw a profit you...
Description : Interesting (withdraw) your profits Don't be tempted to keep raising posisition size or lot size, we recommend you draw a profit you...
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