Trading the FX "trend" - to make consistent profits ( cont 2)
Although the ideal stop would be only 1 pip from entry- you are making it difficult for yourself- as it means every scalp entry as to spot on the correct price at exactly the correct time - with no lag and no slight slippage
3 -5 pips stop on FX pairs with spreads under 1.5 pips is achievable - and please don't just rely on me - (who has taken thousands of live trades with stops under 5 pips) - ask Major Magnum - who has only been scalping my method for under 6 months and is achieving 70 -85% win success rates now - even on batches of 15 -30 trades in a session.
That blows another myth out of the water - ie you cannot trade FX pairs in the "noise" - yes you can - very successfully when you know how to do it and have spent hundreds of hrs carrying it out.
I don't rely on 3 - 5 pip hard stops - I use one click in and out with hard stops placed away by at least 15 -25 pips - and then I can choose to exit manually - at minus 3 or minus 5 etc - if the trade goes wrong. Also if you do get a nanosecond spike of say 3 pips - you then don't gave to worry - you are in control.
Now - moving on to the important part - you entered the trade - you know your exit level and after 2 mins you are now in profit by 2 or 3 pips - question - whats your target - is it 20 pips - 48 pips - or just 5 pips ???
I have said that for me a trend is a move over 3 + pips - so if price moves in your direction by 6 or 7 pips - that surely is then a trend ?
At this point - you as a retail trader - are in control - and you have choice
Ideally - you do have a first target - and ideally again - its above the size of your stop - making the trade at least risk efficient - ie you don't want a 30 pip stop to just have a 5 pip target - bad plan and unless you can guarantee a 90%+ win ratio ( which nobody can) you will lose money.
Many of my scalps average over 7 pips on 100% stakes
The good ones hit 15 and 22 and 30 pips all within less than 15 mins - and i am delighted - because it means I got the trade direction correct and made a great return - ie RR's over 3. - You are out with the money then sitting in your account - not in "suspense land"
Others falter under 5 pips - and i just exit - knowing - although i might have made a profit - ie 3 pips at $50 per pip is still a nice $150 net - in what under 10 mins - I had not achieved a proper result and really i was wrong - but still made money.
So - moving on first targets ideally above 6 pips and then decide where interim dynamic or horizontal S & R are - that might provide the barrier to your trade.
For scalps - most first barriers should be in the 7 -25 pip range - before price pulls back
Check out on the pair you are trading for the scalp range - as the GJ will be totally different to the Swissy or EG.
Then you have to make a decision
Do you exit your scalp with 100% stake - or do you leave some on - hoping that the price will after any pullback stay above your initial stop or entry and then carry on in your direction further.
This is the "No Pain Gain Trade" - previously the free trade concept - ie what ever happens you end up in a win win situation.
I prefer to take of between 65 and 75% of my scalp stake off and leave 25 - 35% of the original stake on ( mostly 30%)
I don't agree with the 50% off and the stop to break even - yet again for me inefficient and not as profitable for me as the 70% off and stop in profit by 5+ pips for the rest of the trade.
That maybe because i do plan to take more scalps ( both ways) on a pair i have a NPGT on - but only when it suits me with my time management and overall risk exposure during the session
Once you are in a NPGT - you can do it after every successful scalp if you want - your target then can be anything - ie the move may just carry on 36 pips - or it might make 360 pips over several days - or even 1000+ pips that happened on one of mine in 2012.
Since March 12th - i have several NPGT's on the EA with the totals now over 700 pips - and then NOT counting the additional scalps I have taken both ways.
And this is from a intraday scalper - what am I doing with trades on over 2 weeks ??
Well start "thinking out the box" - discover and learn the
SECRETS
More to follow
Regards
F