Barramundi
Active member
- Messages
- 208
- Likes
- 34
I thought you'd average up at this price? Now I'm just totally bamboozled....
You cut your losses. A good decision. :clap:
If you hadn't cut your losses you would have suffered a 213 pip drawdown on the first trade.
If you had used the Martingale style of adding to losing positions every 30 pips, you would have added additional sell positions at 1.0110, 1.0140, 1.0170, 1.0200, 1.0230, 1.0260 and 1.0290 and accumulated a total drawdown of 864 pips.
You were risking 864 pips to win 32 pips.
Now you see why Martingale style systems are so dangerous.
A profit trade of only 19 pips. :clap: But you should have let your profits run.
The Euro traded as high as 1.4219 which was 93 pips higher than where you closed out. Use a trailing stop loss for better results
Hi Pip Maker,
I have read your journal and I just hope it works for you.
trailing stop loss
Definition from http://www.investorwords.com/5044/trailing_stop_loss.html thanks google
A complex stop-loss order in which the stop loss price is set at some fixed percentage below the market price. If the market price rises, the stop loss price rises proportionately, but if the stock price falls, the stop loss price doesn't change. This technique allows an investor to set a limit on the maximum possible loss without setting a limit on the maximum possible gain, and without requiring paying attention to the investment on an ongoing basis.
Read more: http://www.investorwords.com/5044/trailing_stop_loss.html#ixzz1HpKP6fGr
How to select it?
U just need to select trailing stop when you place the order on your platform and choose the number of pips or % you can afford to loose per trade. Very easy to use.
Hope it helps
