Posted by forex at 8:23 AM
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1. Have a plan for every trade. Before you place a trade, have a definite reason for doing so as well as a projection of what the market is going to do after you enter the trade.
2. Calculate profit and loss targets. Doing this allows you to establish a reward-to-risk ratio. It is a good idea to establish a reward-to-risk ratio of 3 to 1 before making a trade.
3. Place a stop loss. Placing a stop loss on your trade will automatically take you out of the market if the price moves against you, preventing your winning trade from becoming a loss.