Break even. It is a technique which I highly debate it's use.
Ie:
you take a trade, it rises 20 pips and you set your stop for BE which really should be BE PLUS the SPREAD otherwise you are losing,
Then said trade dips 25 pips only to rise 100. Where are you then? Sure you didn't LOSE, but you sure as hell didn't win.
Trading should is to each is own, but in my view, the correct way to manage money, is to
A. Assess the trade
B. See what the profit potential is as opposed to the risk (possible loss)
C. Validate or Negate.
D. Set it and FORGET IT.
If you lose, you know what you are going to lose and you have accepted that fact well before taking the trade.
If you win - Well!!! You WIN and Make Money.
Now a good rule of thumb is the risk 50 to make 100.
If you want to get in a trade and the odds are more, risk 70 to make 100 your entry either bad or your stops and targets are not correct.
OR THE SIMPLE ANSWER IS DON"T TAKE THE TRADE CAUSE IT AIN'T GOOD!
Wait for a bettyer entry. If you B E all the time you are wasting time IMO.
X
Y
Ie:
you take a trade, it rises 20 pips and you set your stop for BE which really should be BE PLUS the SPREAD otherwise you are losing,
Then said trade dips 25 pips only to rise 100. Where are you then? Sure you didn't LOSE, but you sure as hell didn't win.
Trading should is to each is own, but in my view, the correct way to manage money, is to
A. Assess the trade
B. See what the profit potential is as opposed to the risk (possible loss)
C. Validate or Negate.
D. Set it and FORGET IT.
If you lose, you know what you are going to lose and you have accepted that fact well before taking the trade.
If you win - Well!!! You WIN and Make Money.
Now a good rule of thumb is the risk 50 to make 100.
If you want to get in a trade and the odds are more, risk 70 to make 100 your entry either bad or your stops and targets are not correct.
OR THE SIMPLE ANSWER IS DON"T TAKE THE TRADE CAUSE IT AIN'T GOOD!
Wait for a bettyer entry. If you B E all the time you are wasting time IMO.
X
Y
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