Becoming a Better Trader: Setting Logical Stops & Targets (Webinar)
In today’s webinar, we looked at the important task of identifying stops and targets based on logic, not made up numbers; to use your analysis to identify proper levels before you enter a trade. Often times traders make the mistake of ‘telling the market’ how much they want to take out of a trade, instead of using the same analysis which got them into a trade, to then take them out of a trade.
Also, it’s important to know at what point you are most likely wrong on a trade, your ‘line-in-the-sand’, and then allow for the trade to work by giving it breathing room. This prevents one from ‘churning a position’ and alleviates some of the stress a position can have on a trader when the PnL starts whipping around.
It wasn’t all talk today, we also looked at recent trading examples in order to help demonstrate the principles discussed.
DailyFX analysts’ Q1 forecasts are available on our Trading Guides page
---Written by Paul Robinson, Market Analyst
You can receive Paul’s analysis directly via email by signing up here.
You can follow Paul on Twitter at @PaulRobinonFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.