Friday, June 29, 2007
Thursday, June 28, 2007
I have done a quick basic analysis on the Euro to perhaps aid us in identifying a possible direction. Notice a convergence and 50 fib support. I would add to that analysis a entry / stop loss technique before deciding to take a position on the pair.
I have scaled out on my AUSUSD short and locked in more profit by moving my stop down. I was stopped put for a small profit on the GBPUSD yesterday.
Good luck today.
Wednesday, June 27, 2007
Tuesday, June 26, 2007
I will update with a chart tomorrow if there is something worth looking at. I am short as of tomorrow on the AUD USD pair and have my stop now at break even.
Money management and the correct use of stops are key to profitable trading.
Money management is everything from, not putting your whole account on one trade to taking profits at the right time.
Putting too much on one trade can be a good way to loose a lot of money very fast, a general rule should be no more than about 3% of your account on any one trade.
You should also have targets and an exit plan weather it is to exit the whole position at a certain point or take part profits and use a trailing stop until the price turns and takes your position out. There are lots of methods for exiting you must find a system that works for you and stick to it.
Stops are invaluable in profitable trading and if you dont use them then you should start to.
It is suprising how many people out there still do not use stops as a general rule in there everyday trading. Dont you be one of them.
Stops prevent you from uncontrolable losses and are also very effective for locking in profit because the last thing you want to do is turn a winning trade into a loosing one!
If you cant control your losses you will struggle to keep any profits which will make you an emotional trader that makes rash decisions and no money.
My aim during a trade is to get my stop to break even as soon as sensibly possible. Not to early that the price has not enough room for normal fluctuations but soon enough to keep a profitable trade profitable.
You wont be right every time and every trader has losses but if you cut your losses quickly and let your profits run you will come out on top overall.