Posted by Forex Bliss Formula
Few traders do this but it can be useful to Just note the levels of the stop and limit orders that you set, even though they were not triggered, plus how close the price came to untriggered orders and how far it went past triggered orders. So if the trade was rewarding, you would know how close the price came to causing your stop-loss before it headed back in your direction and you closed at a reasonable profit. You would also know how far it went past your limit order (how much more profit you could have made with a higher target). That information could be very valuable if you start to have the belief that your system would do better if stops were further out, for instance. Of course, you need information about a substantial number of trades before you start tweaking your foreign exchange trading system . It’s best to have full info on at least a hundred trades, perhaps more, before even beginning to consider looking out for a pattern in the losses. Many traders waste a large amount of time attempting to find more systems and more trades, making an attempt to increase their profits by finding extra lucrative trades. This will make all the difference between profits and losses in the long run without requiring you to find a new forex trading methodology.
Tags: foreign exchange trading, forex trading, limit order, stop loss, target