Friday, December 6, 2013

Best strategy for trading

Your trading plan should say at what point you bring your original protective stop to breakeven once price moves favorably for you. Allow the trade to move far enough in your favor so as not to get stopped out prematurely especially if you trade the Forex markets. Traders should try and allow the trade to cover the price of commissions by adding one price tick above your breakeven price. A smart trader will follow their trading plan and never use emotions such as hoping, praying and or wishing. Once the trade shows signs of failure, the trader will allow the market to come back to their protective stop and not just exit because they want to save a few ticks on the loss. Too many traders get in long after their setups and they try to use the original size risk. This simply does not allow for market volatility and they are all too often stopped out only to watch the market resume in the direction of their stopped out trade.
Best strategy for trading