1. Deal with the loss up front before putting on the trade so there are no regrets afterward.
You know where you will put your stop loss and take profit before you take the trade.
When you are patient and take high probability trades you should maintain a good profit/loss ratio.
You should never take a trade that is less than one to one ratio. If you wait for the trades that are
two to one or three to one risk/reward ratio, when you lose one once in a while you will see your
account continuing to grow.
Once you feel like it's a win - Don't Lose
2. Once your trade is profitable you can follow the trade with a trailing stop. If it does not hit
your take profit you will still get some profit out of the trade.
You might also consider the strength of the trade. If it looks strong you could move the take
profit out further and continue to follow it with the trailing stop.
Of course you can elect to close the trade once it reaches a point you feel comfortable with.
It may not be at your take profit but there are signs of slowing and turning or consolidating
and may suggest it may be a good time to get out.
Once you feel like it's a win - Don't Lose
3. Once the profit target is hit start looking for another entry in the same direction as the
first trade, after the retracement or consolidation. Trends many times continue to run.
If the trend is over, look at other currencies that may be trending. Most of the time there
is something that is moving. If you do not find another trade take a break and do
something else.
There is always another trade just a few minutes or hours away.
4. If you get into a trade and it stays in a small channel and it never takes off, just close
the trade as close to break-even as you can with a small profit or small loss and move on.
A trade that is just going sideways is using too much emotional energy and wasting your time.
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