Been a while since we last updated/posted our site.
Today we are going to discuss on how we use our stop loss to make our trade a much more profitable one.
The picture above is a trade we took back in June and achieved a 600% return. We managed to squeeze another 400% from our usual 200% with 0 risk.
Read on and we will explain how we do that…
First as a trader, we have to accept that every trade we enter comes with a risk and there is no 2 way about this. When we first took this trade, we had our stop loss set about 65 pips away(base on our strategy). Refer to the picture on our Entry(Blue) and SL(Red) set.
As the price was trading and hovering around we remained our SL level till we managed to reach 200% (labeled 200% in white). At this point we shifted our SL slightly above our entry which is represented in (orange). Reason for us not shifting even at 150% is because we want to allow the trade to go beyond the range to have an extra edge over this trade. (Look somewhere near the orange arrow, if we shifted it before reaching 200% we would have been stopped out.)
Once the trade achieve 200% the trader has a choice to take full profit too!
As the trade continues moving up, we than started shifting our SL after every 100% . Now even if the trade hits our SL we will still end up with a positive balance. Since the trade is in your control, you have a choice for partial profit.
Lesson here is that SL does not exist just for a losing trade, if use correctly, it can help you achieve greater returns than you ever expected.
Whatever decision you make in your trading just remember to ask yourself if you can accept the outcome.
What will I do if I shift my SL too early and hit it before taking full profit?
What will I do if I miss more profits?
What will I do if I don’t take full profit?
the list can go on.
What ever your question, your answer shouldn’t be something that will make you regret as it will affect your psychology. Do something that you personally will be able to accept and have a peaceful sleep.
Every action done are reflected in your trading result. So start asking if what you are doing is right?
Hope that you can start using SL the way we use it!
Want to learn and find out more? Join our Facebook group to get our trading ideas as we hope to reach out to as many traders as possible.
Here’s the profit and trade we did in June