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xtsunami · 13-01-2003, 05:37

Dude, if you have an indication of a pull-back before you make a trade, why would you not take advantage of it?

In the scenario you give, with that trade size, you are giving up a nice size profit.

FWIW, you may want to reconsider your risk to reward ratio. I personally use about ten percent of my trading capital. In this example, you would be trading with 2 lots not 5. I try to keep that ratio at 1:1.5, meaning, I am risking $1 for a return of $1.50. In this example, your ratio is over 2.5:1 (you are risking over $2.50 to make $1). Seems backward, doesn't it?

XT

13-01-2003, 05:37	#17
xtsunami when time is up.... Join Date: Jan 2003 Posts: 431 Downloads: 0 Uploads: 0 Rep Power: 0	Griffin Dude, if you have an indication of a pull-back before you make a trade, why would you not take advantage of it? In the scenario you give, with that trade size, you are giving up a nice size profit. FWIW, you may want to reconsider your risk to reward ratio. I personally use about ten percent of my trading capital. In this example, you would be trading with 2 lots not 5. I try to keep that ratio at 1:1.5, meaning, I am risking $1 for a return of $1.50. In this example, your ratio is over 2.5:1 (you are risking over $2.50 to make $1). Seems backward, doesn't it? XT