As the whole idea here is to encourage new traders, I will expand on the above comment.
As new traders watch there trades unfold I will explain why I closed some of my positions early.
Another important aspect with the visual side of a trade is giving it a chance to break through a past area deemed important from your preemptive assessment, who is to say that it will not do so with vigour. That area in my above example was last weeks high.
Most times the trade will give you a clue that it has meet resistance, velocity changes, and a bit of bounce comes in.
As the whole idea of trading is to secure profit foremost, You at that point have three choices, 1st exit the trade, 2nd move your stop up to a tight position or 3rd take part profit move your stop to a position which allows wiggle room for the trade to possibly develop in your favour.
In the above trade 3rd was my choice.
You will be surprised as to how many so called traders will allow a small loss turn into a very substantive loss through bad practice.
The above practise of taking some of your trade off and moving the stop to protect what is left is not only essential to survive but has the effect of putting the trader in a state of accomplishment which is as every bit as critical as taking the trade in the first place.
Proof of what I have said can be seen in the learner comments over and over again, they have not put a trade plan in place or use this simple technique to enforce there actions and they panic as a response.
I see my stop on the second have has been taken out, but guess what I have secured profit on both parts of the trade, but most importantly with absolutely no anxiousness, so on to the next trade with out fear.
Cheers
As new traders watch there trades unfold I will explain why I closed some of my positions early.
Another important aspect with the visual side of a trade is giving it a chance to break through a past area deemed important from your preemptive assessment, who is to say that it will not do so with vigour. That area in my above example was last weeks high.
Most times the trade will give you a clue that it has meet resistance, velocity changes, and a bit of bounce comes in.
As the whole idea of trading is to secure profit foremost, You at that point have three choices, 1st exit the trade, 2nd move your stop up to a tight position or 3rd take part profit move your stop to a position which allows wiggle room for the trade to possibly develop in your favour.
In the above trade 3rd was my choice.
You will be surprised as to how many so called traders will allow a small loss turn into a very substantive loss through bad practice.
The above practise of taking some of your trade off and moving the stop to protect what is left is not only essential to survive but has the effect of putting the trader in a state of accomplishment which is as every bit as critical as taking the trade in the first place.
Proof of what I have said can be seen in the learner comments over and over again, they have not put a trade plan in place or use this simple technique to enforce there actions and they panic as a response.
I see my stop on the second have has been taken out, but guess what I have secured profit on both parts of the trade, but most importantly with absolutely no anxiousness, so on to the next trade with out fear.
Cheers
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