Example: EUR/USD Short 1.2850 – Nov. 13, 2008
Today we had one of the largest ranges ever on the S&P index, and its affect on EUR/USD was an initial selloff, followed by a huge spike in price. For this trade, we took a
Month: November 2008
Introduction to Trade Management
One of the biggest myths about trading, and what is usually stamped into the heads of traders from the very early stages of their careers, is that successful entry techniques will lead you to consistent
Mechanics of Risk/Reward
A newer trader is likely to overlook or disregard many discussions on risk/reward because they are either busy fantasizing about millions in profits or too inexperienced to understand the importance of maintaining a proper risk/reward
Position Sizing
Tied to risk/reward, the size of your positions dictates how much you are willing to risk per trade versus how much you will gain. As a general rule of thumb, I risk no more than
Intro to Stop Losses and Taking Profits
When we enter any trade, we have two basic goals: 1. Obtain the maximum amount of profit 2. Protect ourselves from losses It starts from the beginning . Look for the most profitable opportunities in
Stop Losses
In my experience, and as I have discussed in other articles, I tend to focus more on what can go wrong rather than what can go right when it comes to taking a trade. Because
Taking Profits
In order to set a reasonable profit target, we need to know the following about our trade: 1. Is it a countertrend trade and against market sentiment? 2. Is it in the direction of the
Example: EUR/USD Long 1.2655-1.2640 – Nov. 6, 2008
There are 2 big levels here: 1.2655 (bottom of 1hr bucket) 1.2640 (intersection of diagonal trendline) I went long at 1.2656 just in case 1.2640 didnt get hit. Because they were so close together, only
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