+234 802 828 1192Contact Details
Posted on Jul 23, 2019 at 10:25 AM
The Forex market is not always going to be at your beck and call, but you can still call the shots on how your trades close!
Yesterday seemed like one of those trade days when the market, takes a U turn after you have made your decision. But it's okay because it wasn't an outright loss.
3 trade signals were posted and 2 of them closed on profit while the 3rd closed on break even!
Here's what I mean: When your trades move into profit and it suddenly stops moving in that trend without hitting TP, you don't have to lose all the profit you have gathered, when you can close at a break even.
How do you lock your profit as price moves and ensure to close in a little profit regardless of reversals?
Here's the answer: Notice the recommended trailing stop below the "Buy" trade call on the signal below? We actually use them and you should use them too, if you are deliberate about closing your trades in profit.
If you are yet to experience an outright loss in the pip splash, this means that all signals posted have moved into profit before reversal or TP hit and you have the chance to close all trades on profit by simply using the trailing stop feature.
As an Intraday trader, you probably do not want your trades spilling into the next day so having this set up ensures that you close all trades that headed for profit in profit.
Here is how we implemented this:
We simply prepared for reversal by using the trailing stop feature to ensure that profit made on any signal is locked until TP is hit!
We set our trailing stop at 5 which is 50 points on the MT4 platform so that if price starts to reverse before we hit take profit, we can secure some part of all we’ve earned on the trade. This way the trade closes on a break even note.
For example: If we place a sell on EUR/USD with a TP at 30 pips and the market only goes as far as 28 pips in profit before reversing, if our trailing stop is set as 50 points, once price reverses by more than 5 pips the trade closes and we would be leave the trade with a profit worth 23 pips locked!
That’s the magic! And If you haven’t been using the full parameters (including the trailing stop) then you should try this to deal with reversals for the rest of this week.
There's is no better time to start than now, a little profit is always better than a little loss!
Can't keep up with the signals or you just want more? click here to see the weekly forcast for EUR/USD, USD/CAD, GBP/USD and EUR/JPY now.