Hello MattZ, Just wanted to say that this is good advice MattZ regarding choosing a simple price target and waiting. I tried the trail method waiting for the home run and for me, its a bit more challenging at my stage right now to be consistently profitable. In november I hit a $1000 trade, I been chasing it every since. Meanwhile, I watched the single 10-20 ticks profits pass me by while waiting for those runners. Good advice here.
Suppose we get a nice candle with an atypical shadow. That suggests a potential market turning around. Suppose it is directed upwards, and therefore it is necessary to sell after it is closed. But the market gave a false signal: the price has gone up. We realized that we were wrong. Of course, you can close a position manually (and many inexperienced traders do so), but here we face two risks: -We can't always track the market, for example, you've moved away from the terminal, power failure, etc. -Psychological factors work. For example, we may have the illusion that the price will return in the right direction. As a result, we can get an even bigger loss. We can set the level of losses safe for us in advance, based on the strategy and the degree of aggressiveness of trading. The main rule is that if the stop-loss isn't set, the risk is 100%. Therefore, automatic closing of the transaction should be carried out when the quote reaches the price maximum + a couple of points higher for insurance against various technical moments. Regularities according to which the stop-loss is set: -Stop-loss should be set at the level of possible rebound, which should be calculated by support and resistance lines, channels and other instruments. If the price has to cross a significant line to reach S/L, it is better to make it a little bit bigger. -Stop-loss should be at least 2 times less than take-profit. If it seems impossible to you, you should know: the risk management rule implies a different ratio - 3-5 times.