subject: Trailing Your Way To Forex Success [print this page] How many times have you traded in the market with pin point entry strategies that is sure to reap rewards but ended up in disappointment for the exits? I do hope it does not happen to you most of the time. But for me, it happens most of the time. I do not know why, but finally after through reading some good forex books, I was able to find out the underlying reason for my trading disasters. I did not have any trailing stop loss order in place when I did score with a huge profit.
In the end, most or if not all of my profits ended up giving it back to my broker and it was heart wrenching. I was tempted by the precise pin point trading entry signals developed by others but seemingly I was unable to replicate their level of success, often returning large amount of profits and ended up with a loss. I discover that they did not tell me anything about managing my trades and that the market will never always remain in one direction.
All I ever know is to put a stop loss order and that is all I can afford to lose which is a great start. But imagine if you had been in a profit of 150 pips or $1500 for a standard lot placed and it came crashing down on you, wont you feel at ease that if something was in place to prevent all these from happening?
If indeed you may suggest to have shift the stop loss further nearer to the price, do you know where to shift it and how to determine when do you shift it? These puzzling questions in my mind hover around quite awhile until I realize that something must be automated to constantly shift my stop loss as the price moves so that I have a robust stop loss level to monitor my trade.
I need to have a trailing stop loss order in place so that the stop loss will automatically shift when necessary as the market moves. That way, I can secure most of my profits and minimize losses without even monitoring the market all the time. What a great solution!
Knowing how to secure profits when it is ripe and minimizing losses when conditions go against your trading strategy is important in achieving forex success. By constantly monitoring your trade, you can track its progress and therefore reap when its ripe. To do that, you have to find a way to automate your trailing stop loss order first.
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