Know When to Hold ‘em Know When to Fold ‘em (22 of 26)
- Two Big Trading tools (1 of 26)
- You get paid to wait (2 of 26)
- Chasing the Market (3 of 26)
- Always Scale Back When You are Trading Poorly (4 of 26)
- Never Turn a Winner into a Loser (5 of 26)
- Keep things in perspective (6 of 26)
- Develop a trading plan and Stick with it (7 of 26)
- Develop Your Own Style (8 of 26)
- Be Able to Trade Another Day (9 of 26)
- Develop the Skills to Trade Bigger (10 of 26)
- Stop The Pain Close the Losing Trades (11 of 26)
- The First Loss (12 of 26)
- Don’t Turn Your Trades into Religious Trades (13 of 26)
- Don’t Worry About the News (14 of 26)
- Speculators Always Lose (15 of 26)
- Become Good at Losing (16 of 26)
- Use Time to Monitor the Loss of a Trade (17 of 26)
- Only take little losses (18 of 26)
- The Money Pile (19 of 26)
- How to Hit a Homerun (20 of 26)
- Confidence & Control (21 of 26)
- Know When to Hold ‘em Know When to Fold ‘em (22 of 26)
- Be a Trading Machine (23 of 26)
- Be a Trade Taker Not a Trade Watcher (24 of 26)
- The Market Thinks All Traders Are The Same (25 of 26)
- The Market Does Not Care If We Win Or Lose (26 of 26)
We hear all the time that a trade should be scaled out of by one half when you reach a profit target then set your stop loss to break even on the remaining portion of the trade and let it run to see if it will make more money. By scaling out of a trade means to us that the trade was too large to start with when there was the greatest amount of risk.
We feel that you should start out small then add onto the trade when there are add on signals. By letting one half of a trade run to see if it will make more profit says to us that the trader did not know or have any indicators that would let him know when to get out.
We suggest that you should start out small with a stop loss. When the trade moves in your direction then add on or scale into the trade once the trend proves itself. This way you have minimal exposure when things are at most risk. When you start to add on or scale in your stop loss on your first trade should be at a break-even or a small profit so you will not suffer a loss on that trade. We like to start small add on big then get out all at once. If the market gave us a head fake and keeps on going then we can reenter the market with our profits in the bag. If we see signals to reenter the market we are most likely playing with house money. This gives more confidence because we can have a little loss and still have a profitable day.
Tags: Disciplined Trader Series, forex, how to trade, profit target, risk, risk management, stop loss
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