Comments on: Learn Forex #3 – Win more trades

By: adebayo

adebayo — Sat, 03 Jul 2010 16:06:21 +0000

@PIPHUT. point #6 is a typical example of what took place on th 1st of july, i wish av read this article before now and i wish a lot of th members too were aware of this point also, we will not av suffered the losses made on that move and perhaps we may have enjoyed part of the profit also. however, i still dnt get #5 very well, ineed a clarer clarification on this in particular. gret work again. i pray God keeps you and your family for us forever. amen.

By: Sonal

Sonal — Wed, 02 Jun 2010 04:07:45 +0000

Hi Mark,
Can you please tell us how to use ATR. Have heard a lot about it for checking volatility and also stop losses. But am not able to find a good material, so that i can start and use it.

Regards,
sonal

By: piphut

piphut — Mon, 19 Oct 2009 15:21:28 +0000

Anton, all of the points listed in the article are about reducing risk. Examples are using larger time frames, practicing on a demo account, using entry orders to take emotion out, use ATR to gauge volatility.

In the article above I’m not just talking about the size of your stop loss (though that is a key component) – I’m talking about taking smarter and better trades to begin with. It is about being prepared and confident in your trading decisions.

By making smarter decisions (through the points listed in the article) you are increasing your chances of a successful trade – the whole point of the article

By: Anton

Anton — Mon, 19 Oct 2009 15:15:46 +0000

“reduce the risk, and you increase the odds that your trades will be successful…” – I would argue this point.
What “reducing the risk” means? Well, reducing the stop loss size, right? But this in fact can lead to you DECREASING the odds your trade will be successful. How many of us experienced the price hitting a stop loss, then turning around just several pips after and hitting our target… without us? Everyone, I think. And how many of us were saying: “if I only set the stop loss some pips BIGGER, I would win that trade…”
How would you address this, Mark?

By: Nnagozie

Nnagozie — Sat, 26 Sep 2009 09:48:42 +0000

“Multiple lots – a strategy that I use frequently and I know other traders do to is to use multiple lots. If your stop loss is 30 for both of them then set the take profit (or limit) on the first lot to 30 pips as well.”- From the above statements it means that you are using a stops loss of 60 pips for both lots, should the 60 pips for both lots be equivalent to 2% of your balance? Or should only 30 pips be equivalent to 2% of your balance?

By: piphut

piphut — Thu, 17 Sep 2009 14:19:43 +0000

Andy, yes that is what #5 is all about. So instead of multiple lots you could close a portion of your position in the profit. Most of my signals already have multiple targets – under “Trading Idea” at the bottom it will usually say something like “longs favored to 1.4600, 1.4645 and 1.4695″. Those are all different targets.

By: Andy

Andy — Thu, 17 Sep 2009 08:11:37 +0000

Not sure if this is covered already under 5., but you could also use a strategy where you buy/sell units (i.e. 100,000), then once the pair breaks the first resistance/support, you sell/buy a specific amount i.e. 50,000 and move your stop up, so that you are still in the trade with 50,000 but already made a profit and so on.
Is this also covered in your strategy?
It would be great if you can add several profit target numbers to your signals according to this strategy.

By: Nnagozie

Nnagozie — Mon, 07 Sep 2009 07:52:20 +0000

when do I know a ranging market and a volatile market

By: piphut

piphut — Fri, 04 Sep 2009 13:22:29 +0000

Sorry that’s not worded very clearly. What it should say is that if you are struggling with a 50 pip stop then use a MICRO account. With micro accounts lots=10,000, not 100,000 so 1 pip is $1 instead of $10 for a standard lot.

By: Nnagozie

Nnagozie — Fri, 04 Sep 2009 08:17:07 +0000

i have checked on a demo and I ca not find any difference between an account with leverage 1:100 and 1:400. In both accounts a stop loss of 20 pips are the same. Do you mean the lot size when you mentioned “if you are struggling with using a 50 pip stop with 100:1 leverage (50 pips with 100:1 leverage is $500) then use 50:1 or 10:1 (micro account) leverage instead. That way you can have that 50 pip or 100 pip stop and only risk $50 or $100″