Stop Outs

Common feature in Trading is being stopped out. Having a stop out is as important as Money management risk. IT is a fine line of where you decide to take a minimum loss in your trading capital. Having this setup means you agree and know that that is the amount you will risk and loss in order to gain twice the reward.

10% or 20% depending on the system you use, there is a chance of a stop out to occur. Which could be that we are being outbid or out trade, we are wrong, or we are simply too early. Overall these are the ways we minimize our risk , having the stop loss. Knowingly this could happen in the trading arena.

Take for example today’s trade , I took for a 4h setup , which risk 27 pip for a 54 pip reward. Which reasonable low compare to a novice trader who sometimes risk 50 – 100 pip. Again it is also down to money management how this risk values.

I got stop out of my sell. SO it seems price might go higher before the next leg of bearish.

stop_out

 

What do you do after having a loss ? FOrget about it simply. It may take a while for some traders, but for the professionals, it just simply not to bother at all. You just focus on the next good setup . Thats it.

because you know that if the system is 80% winning average over the long term, it means that you have a chance of a winning average after 1 or 2 losses. As long as you maintain the correct RR. The same as scalping or any other type of trading.

SO I dig deeper into the price. Since it is a bull move, surely after LOndon open thre is a few demands needs to clear before the price heads for another bearish run.

EURUSD_intraday eurusd_m30

Here is an intraday chart or short term trading. AS you can see, spotted 2 good level of demand. 1 in the H1 time frame and the other on the m30. SO I set the buy order limit with a minise size as I put 2 orders of a reduce and minimum size both totalling a 1% risk.

Now its down to ‘Let the best Trader win!’ Good luck out there!!

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